Practice Test GeeksCertified Fraud Examiner Exam Practice Test
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Trivia 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 Trivia flashcards as text

  1. Which of the following best describes 'money laundering'?

    Answer: The process of making illegally obtained money appear legitimate

    Money laundering is the process of concealing the origins of criminal proceeds so they appear to come from a legitimate source.

  2. Under U.S. federal law, what statute most directly criminalizes bank fraud?

    Answer: 18 U.S.C. § 1344 (bank fraud)

    18 U.S.C. § 1344 specifically criminalizes schemes to defraud financial institutions or to obtain bank money, funds, or credits by fraud.

  3. Which anti-fraud control is considered most effective at reducing fraud losses according to ACFE research?

    Answer: Fraud hotlines

    ACFE research consistently finds that organizations with hotlines detect fraud faster and suffer smaller losses than those without, making hotlines one of the most cost-effective controls.

  4. What is the primary distinction between 'fraud' and 'abuse' in the occupational fraud context?

    Answer: Fraud is illegal; abuse may be unethical but not necessarily illegal

    Fraud involves intentional deception for financial gain that violates the law, while abuse refers to behavior that is improper or inconsistent with policy but not necessarily criminal.

  5. The Foreign Corrupt Practices Act (FCPA) prohibits which of the following?

    Answer: Bribing foreign government officials to obtain or retain business

    The FCPA makes it illegal for U.S. persons and companies to bribe foreign officials to gain a business advantage, and requires accurate books and records.

  6. In a fraud investigation, which document would a fraud examiner most likely subpoena to trace hidden assets through real estate?

    Answer: County deed records

    County deed records show property ownership transfers and values, making them essential for tracing real estate assets that a subject may be trying to hide.

  7. Which of the following is an example of 'financial statement fraud' rather than asset misappropriation?

    Answer: A CFO overstates revenue to meet earnings targets

    Overstating revenue to meet earnings targets is financial statement fraud because the intent is to mislead financial statement users, not to directly steal assets.