CFE-Financial Transactions and Fraud Schemes
Which of the following is a typical method used to make corrupt payments in bribery and
corruption schemes? - ✔✔Payment of credit card bills, gifts, travel, entertainment, c
...
CFE-Financial Transactions and Fraud Schemes
Which of the following is a typical method used to make corrupt payments in bribery and
corruption schemes? - ✔✔Payment of credit card bills, gifts, travel, entertainment, checks, and
other financial interests.
Laura, the sales manager of Sam Corp., is afraid sales revenue for the period is not going to meet
company goals. To make up for the shortfall, she decides to mail invoices to fake customers and
credit (increase) revenue on the books for these sales. What account will she most likely debit to
balance these fictitious revenue entries and conceal her scheme? - ✔✔Accounts receivable.
James runs an electronics store. One of the main challenges in his business is keeping up with
technological advances. Because of this, his auditors want to ensure inventory is not fraudulently
overstated on the store's balance sheet. Which of the following actions should the auditors take to
ensure inventory is not overstated? - ✔✔View the inventory and conduct a physical count, make
sure obsolete inventory has been written off, and ensure that inventory is recorded at the lower of
cost or market value.
Which of the following statements is true regarding the statement of cash flows? - ✔✔The
statement of cash flows does NOT shows a company's financial position at a specific point in
time.
The means of measuring the relationship between two different financial statement amounts: -
✔✔Ratio analysis
A CFE has received a tip that an employee in the claims department is processing claims for his
own benefit during non-working hours. To gather information about the validity of this tip, the
CFE should look at which of the following reports? - ✔✔
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