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

1. According to accounting principles, ________ and ________ should be recorded or matched in the same accounting period; failing to do so violates the matching principle of GAAP.

A) Capitalized expenses and Liabilities
B) Revenue and Income statement
C) Income statement and Long-term contracts
D) Revenue and corresponding expenses

2. The act of an official or fiduciary person who unlawfully and wrongfully uses his station or character to procure some benefit, contrary to duty and rights of others, is called:

A) Overbilling
B) Conflict of interest
C) Corruption
D) Bribery

3. To reduce his tax bill, John adds fake deductions to his personal tax return. John is MOST LIKELY engaging in:

A) Tax avoidance
B) Tax evasion
C) Tax misappropriation
D) Tax sheltering

4. In Cressey's fraud triangle, its three legs are Opportunity, Pressure, and:

A) Violation
B) Isolation
C) Rationalization
D) None of the above

5. ____________ is a process by which a bookkeeper records all transactions and can adjust the books.

A) Journal Entries
B) Financial statement
C) Accounting Cycle
D) None of all

Solutions: