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ACFE CFE-Fraud-Schemes-and-Financial-Crimes Exam Syllabus Topics:

SectionObjectives
Topic 1: Fraud Schemes- Asset Misappropriation Schemes
  • 1. Skimming and cash larceny
    • 2. Billing and expense reimbursement fraud
      - Financial Statement Fraud
      • 1. Asset overstatement and liability concealment
        • 2. Revenue recognition manipulation
          Topic 2: Financial Crimes- Money Laundering
          • 1. Placement, layering, integration stages
            - Banking and Payment Fraud
            • 1. Wire fraud and electronic transfers
              • 2. Check and credit card fraud
                Topic 3: Fraud Investigation and Analysis- Data analysis in fraud detection
                • 1. Trend and anomaly identification
                  - Evidence collection and documentation
                  • 1. Chain of custody principles

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

                    1. Which of the following is a method that a fraudster might use to conceal inventory shrinkage?

                    A) Selling merchandise without recording the sale
                    B) All of the above
                    C) Falsely increasing the perpetual inventory record
                    D) Writing off stolen inventory as scrap


                    2. Which of the following is a reason why prepaid debit and gift card fraud schemes are appealing to fraudsters?

                    A) Prepaid cards can only be purchased from financial institutions.
                    B) All of the above are reasons why prepaid cards are appealing to fraudsters.
                    C) Prepaid cards are often not accepted by online retailers and can only be used in transactions in which the cards must be physically present.
                    D) Prepaid cards can be purchased with stolen credit cards and used to quickly convert illicit credit card funds into legitimate cash.


                    3. Which of the following statements is TRUE regarding cash-basis accounting?

                    A) Expenses are recorded in the same period as the revenues they help generate.
                    B) Revenues are recorded in the accounting system when money is received.
                    C) Revenues are generally recognized when services are provided to a customer.
                    D) Cash-basis accounting is more complex to use than accrual-basis accounting.


                    4. Which of the following statements regarding financial statement disclosures is TRUE?

                    A) Related-party transactions only need to be disclosed if they might financially harm the company's stakeholders.
                    B) Changes in accounting principles do not need to be disclosed in the financial statements.
                    C) Management must disclose potential losses from ongoing litigation if the likelihood of the related liability is reasonably possible.
                    D) Events occurring after the close of a reporting period that might significantly affect the financial statements do not need to be disclosed.


                    5. Which of the following statements is MOST ACCURATE regarding financial reporting practices and accounting frameworks, such as U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS)?

                    A) The financial reporting practices that a publicly traded company must follow are determined by the company's jurisdiction.
                    B) All publicly traded companies are required to adopt either U.S. GAAP or IFRS as their accounting framework.
                    C) U.S. GAAP is a principle-based accounting framework, and IFRS is a rules-based accounting framework.
                    D) Organizations that conduct business internationally must adopt IFRS as their accounting framework for financial reporting.


                    Solutions:

                    Question # 1
                    Answer: B
                    Question # 2
                    Answer: D
                    Question # 3
                    Answer: B
                    Question # 4
                    Answer: C
                    Question # 5
                    Answer: A

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