ACFE CFE-Financial-Transactions-and-Fraud-Schemes Exam Questions Free Practice Test

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Questions # 21:

Which of the following statements regarding financial statement disclosures is TRUE?

Options:

Events occurring after the close of the reporting period that might significantly affect the financial statements do not need to be disclosed.

Management must disclose potential losses from ongoing litigation even when it is unlikely that the related liability will result in a future obligation.

All information relating to the company must be disclosed in the financial statements, regardless of materiality.

Changes in accounting principles must be disclosed in the financial statements.

Questions # 22:

Which of the following scenarios is an example of upcoding?

Options:

Hope is diagnosed with an ear infection. Hope's doctor writes her a prescription for a name brand medication instead of prescribing a less expensive generic medication.

Dr. Smith performed a hysterectomy on Roberta. Dr. Smith submits an insurance claim using three procedure codes instead of the single code normally used for a hysterectomy.

Dr. Catz spends 15 minutes with a patient. She later submits a bill to the patient's insurance company using a code that corresponds to an office visit lasting 60 minutes.

Steven receives medical services prior to his new insurance going into effect. Before submitting the claim, he changes the service date on his bill so that it will be covered by insurance.

Questions # 23:

Which of the following items do NOT appear on the balance sheet?

Options:

Owners' equity

Liabilities

Expenses

Assets

Questions # 24:

Which of the following is an insurance fraud detection tool used for identifying funds fraudulently sent to fictitious payees by using computer-generated reports to compare payments sent to the same location?

Options:

Duplicate payment lists

Address similarity reports

Exception reports

Electronic confirmations

Questions # 25:

___________ allows the fraud examiner to inspect key attributes on a smaller portion (or sample) of those documents.

Questions # 26:

Which of the following is NOT a justifiable reason to depart from generally accepted accounting principles (GAAP)?

Options:

The expected costs associated with following GAAP would exceed the expected benefits of compliance.

It is likely that assets would be understated and liabilities would be overstated.

A transaction is considered immaterial and therefore irrelevant to the accurate interpretation of financial statements.

The application of GAAP could produce misleading financial statements.

Questions # 27:

Which counts sometimes can give rise to inventory theft detection?

Options:

Perpetual inventory counts

Physical inventory counts

Concealment inventory counts

None of the above

Questions # 28:

According to SAB 104, for the revenue to be typically considered realized or realizable and earned, which of the following criteria is NOT met:

Options:

Persuasive evidence of an arrangement exists

Services has been rendered

Timings have been met

Collectability is reasonably assured

Questions # 29:

What can make it easy for an employee to skim sales or receivables?

Options:

Revenue sources and recording procedures

Poor collection and recording procedures

Internal audits and recording procedures

Questions # 30:

________, one of the Fraud synonyms implies that deceiving so thoroughly as to obscure the truth:

Options:

Deceive

Delude

Mislead

Beguile

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