Fraud IQ Test
Test your anti-fraud IQ by answering practice questions covering material from the CFE Exam.
- 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)
- Administrative law
- Substantive law
- Procedural law
- Natural law
- Central Intelligence Agency
- Office of Money Laundering Compliance
- Office of Foreign Assets Control
- An altered payee scheme
- A forged maker scheme
- A forged endorsement scheme
- A cash larceny scheme
- Failing to pay a claim because the claim is missing required information
- Selling an insurance policy that is disguised as a saving plan or investment
- Submitting cost data to health care regulators to justify rate increases
- All of the above
- Preventive; detective
- Detective; investigative
- Investigative; deterrent
- Investigative; detective
- Avoiding the risk
- Assuming the risk
- Transferring the risk
- Mitigating the risk
Correct Answer: (D)
- Unrecorded cash payments
- Sham loan
- False accounting entry
- Daisy chain
- Balance sheet and income statement analysis
- Horizontal and historical analysis
- Horizontal and vertical analysis
- Vertical and historical analysis
In a forged endorsement scheme, an employee intercepts a company check intended for a third party and converts the check by endorsing it with the third party's name. Correct Answer: (B)
- Anti-Kickback Act of 1986
- Bribery of public officials statute
- Foreign Corrupt Practices ACT (FCPA)
- Misprision of felony
- Failing to file and pay
- Making a frivolous return
- Making a false return
- Conspiring to defraud the United States
- The defendant made and subscribed a return, statement, or other document that was false with regard to a material matter.
- The document contained a written declaration that it was made under the penalties of perjury.
- The defendant did not believe the document was true and correct as to every material matter.
- The defendant falsely subscribed to the document willfully, with the specific intent to violate the law.