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ACFE Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam Sample Questions (Q13-Q18):
NEW QUESTION # 13
Which check tampering red flag may indicate employees have embezzled cash and charged the embezzlement to expense accounts?
Answer: D
NEW QUESTION # 14
Financial statement fraud is BEST described as the intentional or accidental misstatement of amounts in the financial statements.
Answer: A
Explanation:
Detailed Explanation:
* Rationale for Correct Answer: By definition, financial statement fraud is intentional. Errors or accidents in reporting are not fraud; they are mistakes. Fraud requires deliberate misrepresentation to deceive users of financial statements.
* Analysis of Incorrect Option:
* A. True - Incorrect because it includes "accidental" misstatements, which fall outside fraud.
* Key Concept: Intentional misstatement is the defining element of financial statement fraud.
Reference: ACFE Manual, Financial Statement Fraud - Definition and Elements.
NEW QUESTION # 15
Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?
Answer: A
NEW QUESTION # 16
People commit financial statement fraud to:
Answer: D
Explanation:
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Financial Statement Fraud - Motivations and Incentives.
NEW QUESTION # 17
Which of the following is a TRUE statement regarding check fraud?
Answer: D
NEW QUESTION # 18
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