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ACFE CFE-FINANCIAL-TRANSACTIONS-AND-FRAUD-SCHEMES Practice Exam Questions
Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam
Total Questions : 242
Update Date : July 09, 2026
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ACFE CFE-FINANCIAL-TRANSACTIONS-AND-FRAUD-SCHEMES Sample Question Answers
Question # 1Which of the following is true for Red flags associated with fictitious revenues?
A. Slow growth or usual profitability, when not compared to other companies in the sameindustry.
B. Usual growth in the number of days purchase in receivables
C. A significant volume of sales to entries whose substance and ownership is not known.
D. A usual surge in purchase by a majority of units within a company, or of purchaserecorded by corporate headquarters.
Question # 2
Which of the following is the amount of money that would be realized upon the sale of theasset at some point in the future, less the costs associated with owing, operating andselling it?
A. Net realizable value
B. Going concern
C. Cost
D. Fair value
Question # 3
Accounting records are designed to be kept on subjective rather than objective evidence.
A. True
B. False
Question # 4
Accounting records are designed to be kept on subjective rather than objective evidence.
A. True
B. False
Question # 5
What can make it easy for an employee to skim sales or receivables?
A. Revenue sources and recording procedures
B. Poor collection and recording procedures
C. Internal audits and recording procedures
D. Register manipulations and recording procedures
Question # 6
The heart of book keeping system is the ___________.
A. Asset
B. Liability
C. Checkbook
D. Journal
Question # 7
Forced reconciliation of the account says:
A. to conceal shrinkage is to alter inventory record so that it matches the physical inventorycount.
B. to conceal inventory is to alter shrinkage record so that it matches the physical inventorycount.
C. to conceal shrinkage is to change the perpetual inventory record so that it matches thephysical inventory count.
D. to conceal write-offs is to change the perpetual inventory record so that it matches thephysical inventory count.
Question # 8
__________ is required if and when officers, executives or other persons in trustedpositions become subjects of a criminal indictment.
A. Conflict of interest
B. Turnaround sale or flip
C. Disclosure
D. Resource diversion
Question # 9
Which sale occurs when the accomplice of the employee-fraudster “buys” merchandise, but the employee does not ring up the sale, and the accomplice takes the merchandise withoutmaking any payment?
A. Whole sale
B. Fake sale
C. Fraudster sale
D. Preliminary sale
Question # 10
Which of the following is the criterion for bid solicitation?
A. Containing false statements
B. Allowing the purchaser to discuss possible employment with the contractor
C. To withdraw low bids
D. To falsify the bid log
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