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ACFE Certified Fraud Examiner -Fraud Schemes and Financial Crimes Sample Questions:

1. Which of the following is a TRUE statement about counterfeit payment cards?

A) All of the above are true statements about counterfeit payment cards.
B) The hologram on payment cards is relatively simple to reproduce.
C) The production of counterfeit payment cards is too complicated for the use of high-speed printers.
D) Counterfeit payment cards can be created with blank plastic cards.

2. Which of the following is the MOST APPROPRIATE technique for detecting a cost mischarging scheme?

A) Inspecting questioned goods or materials by examining packaging, appearance, and description
B) Comparing the direct and indirect labor account totals from the prior year to the current year
C) Examining any change orders submitted by a contractor that add new items
D) Reviewing the inspection and testing reports of questioned goods or materials

3. _________ revenues involve the recording of sales of goods or services that did not occur.

A) Red flag revenues
B) Fictitious or fabricated revenues
C) Financial revenues
D) Concealed revenues

4. Which of the following is a red flag that might indicate the existence of a need recognition scheme?

A) The purchasing entity does not have high requirements for stock and inventory levels.
B) The purchasing entity identifies a need that can be met by various suppliers.
C) The purchasing entity's materials are not being ordered at the optimal reorder point.
D) The purchasing entity has an unusually large list of backup suppliers available.

5. Which of the following statements regarding a nonconforming goods or services procurement fraud scheme is MOST ACCURATE?

A) In a nonconforming goods or services scheme, a contractor intentionally bills the procuring entity for labor- or material-related expenses that were not incurred.
B) In a nonconforming goods or services scheme, a contractor uses refurbished materials when completing a project despite the procuring entity requiring new materials.
C) In a nonconforming goods or services scheme, a contractor colludes with procuring entity personnel to secure a contract for unnecessary goods or services.
D) In a nonconforming goods or services scheme, a contractor submits a low bid with the intention of increasing the prices of their goods and services after winning the contract.

Solutions: