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Certified Fraud Examiner (CFE) MCQ Flashcards

7 cards from real CFE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Certified Fraud Examiner (CFE) MCQ flashcards as text

  1. A company controller creates fictitious vendors and approves invoices from those vendors for payment. This scheme is best classified as which type of asset misappropriation?

    Answer: Billing scheme

    Billing schemes involve employees causing an organization to issue fraudulent payments to fictitious or real vendors under false pretenses.

  2. Under the ACFE's fraud tree, which of the following is a subcategory of corruption?

    Answer: Economic extortion

    Economic extortion is a subcategory of corruption in which an employee demands payment in exchange for a business decision favorable to the payer.

  3. Which interview technique involves asking open-ended, narrative questions to encourage a subject to tell a story in their own words?

    Answer: Cognitive interview

    The cognitive interview uses memory-enhancing techniques including open-ended narrative questions to maximize the amount of accurate information gathered.

  4. The 'tone at the top' concept in fraud prevention primarily refers to which of the following?

    Answer: Management's attitude and commitment to ethical conduct

    Tone at the top reflects how senior management's ethical behavior and commitment to integrity sets the cultural standard for the entire organization.

  5. A fraud examiner obtains bank records through a grand jury subpoena. This type of evidence is considered which of the following?

    Answer: Documentary evidence

    Bank records, invoices, and other written documents obtained during an investigation are classified as documentary evidence.

  6. Which element is NOT required to prove civil fraud in a U.S. court?

    Answer: Criminal intent beyond a reasonable doubt

    Civil fraud is proven by a preponderance of the evidence standard and does not require proof of criminal intent beyond a reasonable doubt.

  7. Which analytical procedure compares each line item in a financial statement as a percentage of a base figure (e.g., total sales) to identify unusual relationships?

    Answer: Common-size financial statement analysis

    Common-size analysis expresses each line item as a percentage of a base amount, making it easy to spot proportions that deviate from expectations.