[Sep 10, 2025] Fully Updated Dumps PDF - Latest CFE-Financial-Transactions-and-Fraud-Schemes Exam Questions and Answers
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The CFE-Financial-Transactions-and-Fraud-Schemes certification is highly respected in the industry and is recognized as a mark of excellence in fraud examination. Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam certification demonstrates that the holder has the knowledge and skills necessary to effectively investigate and prevent fraud in a variety of contexts. In addition to providing valuable professional development opportunities, the CFE-Financial-Transactions-and-Fraud-Schemes certification can also enhance career opportunities and increase earning potential for those who hold it.
The ACFE CFE-Financial-Transactions-and-Fraud-Schemes exam consists of four sections, each focusing on a different aspect of financial transactions and fraud schemes. The first section covers basic principles of fraud examination, such as the legal and ethical considerations of fraud investigations. The second section focuses on financial statement fraud, including techniques for detecting and preventing fraudulent financial reporting. The third section covers asset misappropriation, which includes fraud schemes related to embezzlement, theft, and other forms of misappropriation. The fourth and final section of the exam covers money laundering, including the various methods used to launder illicit funds and the techniques for detecting and preventing this type of fraud.
NEW QUESTION # 39
Which of the following is NOT a medium that commonly causes an organization's proprietary information to be compromised?
- A. Speeches made by executives
- B. Reports to company shareholders
- C. Documents that were shredded using a cross-cut shredder
- D. Information displayed at an employee's workstation
Answer: C
NEW QUESTION # 40
To keep the accounting equation in balance, which of the following actions will need to be taken if someone wants to conceal the fraudulent removal of a liability from the books?
- A. Decreasing an asset
- B. Decreasing a different liability
- C. Decreasing owners' equity
- D. Creating a fictitious expense
Answer: D
NEW QUESTION # 41
What is sometimes used to overcome well-designed internal controls of a victim company?
- A. Collusion
- B. Rubber stamp supervisors
- C. Shell company
- D. Fraudulent invoices
Answer: A
NEW QUESTION # 42
Which of the following statements is TRUE regarding electronic payment tampering?
- A. Companies should use separate bank accounts for paper and electronic transactions.
- B. The individual who makes electronic payments on the company's behalf should also set up ACH filters to ensure only designated individuals get paid.
- C. Positive pay is not available on ACH transactions.
- D. Electronic payment tampering schemes leave a clear audit trail.
Answer: A
Explanation:
Explanation/Reference: https://www.journalofaccountancy.com/issues/2016/jun/electronic-payment-and-check-fraud.html
NEW QUESTION # 43
Which of the following method is NOT used to detect conflicts of interest?
- A. Interviews with purchasing personnel
- B. Review of vendor ownership files
- C. Tips & Complaints
- D. Underbillings of assets
Answer: D
NEW QUESTION # 44
__________ can be defined as conduct detrimental to the organization and to the employee.
- A. Employee fraud
- B. Employee deviance
- C. Employee theft
- D. All of the above
Answer: B
NEW QUESTION # 45
Green, an employee of ABC Corporation, formed a company called Acme Consulting. He opened a bank account in Acme's name and used his home computer to create invoices from Acme for "consulting services." In reality, Acme does not provide any services at all. It is a company in name only. Green submitted the invoices from Acme Consulting to his employer, ABC Corporation. When ABC made payment on the false invoices, Green collected and deposited them. What type of scheme has Green committed?
- A. A cash larceny scheme
- B. A pass-through scheme
- C. A pay and return scheme
- D. A shell company scheme
Answer: D
Explanation:
Explanation/Reference: https://www.millerkaplan.com/is-your-business-inadvertently-paying-a-shell-company
NEW QUESTION # 46
Conflict of interest cases are more easily prevented than detected.
- A. False
- B. True
Answer: B
NEW QUESTION # 47
In which phase of competitive bidding process, fraudsters attempt to influence the selection of a contractor by restricting the pool of competitors from whom bids are sought?
- A. Submission
- B. Need recognition
- C. False specification
- D. Solicitation
Answer: D
NEW QUESTION # 48
Which of the following scenarios is an example of upcoding?
- A. Victor receives payment in exchange for undergoing an unnecessary medical procedure that is then billed to his health care program.
- B. Dr. Hernandez uses four procedure codes when submitting a claim for a coronary bypass he performed that is supposed to be billed using a single procedure code.
- C. Dr. Johnson, a psychiatrist, regularly sees patients for sessions lasting less then forty minutes, but she submits the claims with a code that indicates the sessions were sixty minutes long.
- D. Margot inflates a medical bill she is seeking reimbursement for by adding an additional digit to the amount charged.
Answer: C
Explanation:
Explanation/Reference: https://www.acfeinsights.com/acfe-insights/2018/12/12/health-care-fraud-5-common-billing-schemes
NEW QUESTION # 49
_________ assumes the business will go on indefinitely in the future.
- A. Cost
- B. Materiality
- C. Fair value
- D. Going concern
Answer: D
NEW QUESTION # 50
Which of the following is NOT a justifiable reason to depart from generally accepted accounting principles (GAAP)?
- A. Departing from GAAP will make the company appear more profitable.
- B. It is a common industry practice to give particular transactions a specific accounting treatment.
- C. The transaction at issue is considered to be immaterial.
- D. Adherence to GAAP would produce misleading results.
Answer: B
NEW QUESTION # 51
Which of the following is a recommended method for safeguarding an organization's proprietary information?
- A. Classifying data into security access levels based on the number of years that employees have worked for the company
- B. Changing locks and reprogramming door access codes every three to five years
- C. Educating employees about nondisclosure agreements when they are hired and during exit interviews
- D. Requiring employees to make notes and keep drafts related to confidential projects
Answer: C
NEW QUESTION # 52
Which of the following is the MOST ACCURATE statement about the different types of malware?
- A. Ransomware is a malicious self-replicating computer program that penetrates operating systems to spread malicious code to other computers.
- B. A Trojan horse is a software program that, while not definitely malicious, monitors and logs the keys pressed on a system's keyboard.
- C. A worm is a type of software that, while not definitely malicious, has a suspicious or potentially unwanted aspect to it.
- D. Spyware is software that collects and reports information about a computer user without the user's knowledge or consent.
Answer: D
Explanation:
Explanation/Reference: https://www.techtarget.com/searchsecurity/definition/spyware#:~:text=Spyware%20is%20a%20type%20of,data%20firms%20or%20external%20users
NEW QUESTION # 53
Which of the following is a TRUE statement regarding check fraud?
- A. None of the above statements are true.
- B. Most perpetrators of check fraud are caught and prosecuted.
- C. The penalties for committing check fraud are relatively severe.
- D. The equipment required to commit check fraud is relatively inexpensive.
Answer: D
NEW QUESTION # 54
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The Association of Certified Fraud Examiners (ACFE) is a globally recognized organization that focuses on preventing and detecting fraud. One of the certifications offered by ACFE is the Certified Fraud Examiner (CFE) designation. The CFE designation is highly regarded in the fraud investigation field and is known for its rigorous testing process. One of the exams offered under the CFE designation is the Financial Transactions and Fraud Schemes (FTFS) exam.
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