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ACFE Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam Sample Questions (Q42-Q47):

NEW QUESTION # 42
Which of the following is a red flag that might indicate that someone is attempting to commit insurance fraud?

• A. A fire loss claim includes numerous personal items and family heirlooms.
• B. The insured made one other insurance claim within the past five years.
• C. A claim is made a short time after a change in policy coverage.
• D. A theft claim includes recently purchased items with their receipts.

Answer: C Explanation:
Explanation/Reference: https://www.acfe.com/uploadedfiles/acfe_website/content/documents/insurance-fraud-handbook.pdf
NEW QUESTION # 43
The principle behind full disclosure is:

• A. None of above
• B. Any material deviation from SAS must be explained to the writer oh the financial information.
• C. Any material deviation from GAAP must be explained to writer of the financial information.
• D. Any material deviation from GAAP must be explained to the reader of the financial information.

Answer: D
NEW QUESTION # 44
In which approach, fraudsters produce whatever financial statements they wish, perhaps using just a typewriter or a personal computer.

• A. Organized accounting
• B. Beating accounting
• C. Outside accounting system
• D. Playing the accounting

Answer: C
NEW QUESTION # 45
Which of the following is a recommended activity that organizations should engage in to protect their proprietary information from threats?

• A. Practicing data maximization to limit the information available during a data breach
• B. Prohibiting all nonemployees from entering the organization's premises
• C. Enlisting a company task force to identify areas most at risk for theft by a competitor
• D. Strong devices containing sensitive data in specially constructed quiet rooms

Answer: C Explanation:
Explanation/Reference: https://www.acfe.com/uploadedfiles/acfe_website/content/documents/managing-business-risk.pdf
NEW QUESTION # 46
Which of the following is NOT the aspect of inventory purchase?

• A. Increase sales in year 2 are unexpected and purchase of inventory does not keep pace with the sales.
• B. Inventory purchases purposely increase in year 1 only to be liquidated in year 2.
• C. inventory for the year 2 will be much greater than year 1.
• D. might be some fraud scheme in inventory.

Answer: C
NEW QUESTION # 47
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