CFE Trivia 2 — Questions and Answers
Question 1: Which organization publishes the Report to the Nations on Occupational Fraud and Abuse?
- AICPA
- ACFE (Correct answer)
- FBI
- IIA
Correct answer: ACFE
The Association of Certified Fraud Examiners (ACFE) publishes the Report to the Nations, the primary global study on occupational fraud.
Question 2: The 'fraud triangle' concept was originally introduced by which criminologist?
- Edwin Sutherland
- Donald Cressey (Correct answer)
- Joseph Wells
- Richard Biegelman
Correct answer: Donald Cressey
Donald Cressey developed the fraud triangle theory through his study of embezzlers, identifying pressure, opportunity, and rationalization.
Question 3: According to ACFE research, what percentage of fraud cases are initially detected by tips?
- About 20%
- About 30%
- About 43% (Correct answer)
- About 60%
Correct answer: About 43%
ACFE's Report to the Nations consistently finds that tips are the most common fraud detection method, accounting for roughly 43% of cases.
Question 4: Which of the following best describes 'lapping' as a fraud scheme?
- Overstating inventory counts
- Stealing cash and covering it by applying later receipts (Correct answer)
- Creating fictitious vendors
- Falsifying expense reports
Correct answer: Stealing cash and covering it by applying later receipts
Lapping involves stealing a customer's payment and then covering the shortage by posting a subsequent customer's payment to the first account.
Question 5: What is the primary purpose of a 'hotline' in fraud prevention programs?
- To report IT security breaches
- To provide an anonymous channel for reporting suspected fraud (Correct answer)
- To handle customer complaints
- To escalate HR disputes
Correct answer: To provide an anonymous channel for reporting suspected fraud
Fraud hotlines give employees and others an anonymous means to report suspected misconduct, which is the most effective fraud detection tool.
Question 6: In which section of the ACFE's Fraud Examiners Manual would you find guidance on interviewing techniques?
- Financial Transactions and Fraud Schemes
- Law
- Investigation (Correct answer)
- Fraud Prevention and Deterrence
Correct answer: Investigation
The Investigation section of the Fraud Examiners Manual covers interviewing techniques, evidence gathering, and investigative procedures.
Question 7: Which fraud scheme involves an employee submitting the same legitimate expense more than once for reimbursement?
- Fictitious expense scheme
- Multiple reimbursement scheme (Correct answer)
- Overstated expense scheme
- Personal purchase scheme
Correct answer: Multiple reimbursement scheme
A multiple reimbursement scheme occurs when an employee submits duplicate copies of the same legitimate receipt to receive double (or more) reimbursement.
CFE Trivia 2
Which organization publishes the Report to the Nations on Occupational Fraud and Abuse?