Fraud IQ Test
Test your anti-fraud IQ by answering practice questions covering material from the CFE Exam.
- Direct evidence
- Real evidence
- Demonstrative evidence
- Documentary evidence
- None of the above
Other common defenses in criminal cases include: alibi, consent, de minimis infraction (trivial), duress, entrapment, ignorance, mistake, insanity, necessity, protection of property, self-defense, public duty, legal impossibility, and protection of others. Also pertinent in the matter of defense are questions involving statutes of limitations, proper venue, and proper jurisdiction.
Correct Answer: (A)
- An unrecorded sales (skimming) scheme
- An understated sales (skimming) scheme
- A cash larceny scheme
- Lapping of receivables
Rather than reduce the price of an item, an employee might record the sale of fewer items. If 100 units are sold, for instance, an employee might only record the sale of 50 units and skim the excess receipts. Correct Answer: (B)
- A ghost employee scheme
- A check tampering scheme
- A falsified hours and wages scheme
- A fraudulent commissions scheme
- Cash receipts
- Bank deposits
- Bank reconciliation
- Cash disbursements
- Write off
The factors identified in the Fraud Triangle are helpful when coming up with a fraud keyword list. One of these factors is rationalization; consequently, the fraud examiner should consider how someone in the entity might be able to rationalize committing fraud. Because most fraudsters do not have a criminal background, justifying their actions is a key part of committing fraud. Some keywords that might indicate a fraudster is rationalizing his actions include reasonable, deserve, and temporary.
Other keywords can be used to identify the other factors indicated by the fraud triangle. For example, write off and override would indicate opportunity to commit fraud, while quota suggests pressure to commit fraud.
Correct Answer: (D)
- To establish the interview purpose
- To break down psychological barriers
- Social courtesy
- Professional courtesy
Correct Answer: (B)
Imaging refers to the process whereby a forensic image of a hard drive or other digital media is made and imaged to another hard disk drive or other media for forensic analysis. A forensic image (also called a forensic copy, mirror image, or ghost image) is an image or exact, sector by sector, copy of a hard drive or other digital media.
Correct Answer: (A)
- An illegal pyramid
- A fly and buy scheme
- A Ponzi scheme
- A dog and pony scam
- Advance fee
- Check washing
- Check kiting
- Check ring
- Check skimming
- Avoid answering the question by talking about something else.
- Ask the judge for a recess.
- Request that the question be rephrased.
- Object to the question phrasing.
- Securities Act of 1933
- Securities Exchange Act of 1931
- Investment Fraud Prevention Act of 1933
- Truth in Lending Act of 1931
*The defendant made an untrue statement of fact.
*The statement was communicated (published) to third parties.
*The statement was made on an unprivileged occasion.
*The statement damaged the subject's reputation.
For a statement to qualify as defamatory, the occasion in which the statement is made must be an unprivileged one. If the statement is made on a privileged occasion, then no liability can attach to the speaker. Basically, the law recognizes that there are some circumstances in which the need to share information is so important that people will be allowed to make mistakes from time to time without having to worry about being sued for defamation. Statements that are made in these circumstances are said to be privileged. Correct Answer: (B)