CFS CFS Fraud Schemes & Classifications

Question 1

Which category of occupational fraud involves an employee manipulating financial statements to misrepresent the company's financial position?

Accepted Answer

Financial statement fraud

Answer

Asset misappropriation

Answer

Corruption

Answer

Embezzlement

Question 2

A Ponzi scheme is best characterized as:

Accepted Answer

Using new investor funds to pay returns to earlier investors

Answer

Inflating asset values on the balance sheet

Answer

Bribing government officials for contracts

Answer

Stealing physical inventory from a warehouse

Question 3

Which skimming scheme involves an employee stealing cash before it is recorded in the accounting system?

Accepted Answer

Off-book skimming

Answer

Lapping

Answer

Check tampering

Answer

Billing scheme

Question 4

A lapping scheme in accounts receivable fraud works by:

Accepted Answer

Using one customer's payment to cover a theft from another customer's account

Answer

Inflating revenue figures in the general ledger

Answer

Creating fictitious vendors to generate fraudulent payments

Answer

Forging endorsements on company checks

Question 5

Which type of fraud scheme involves an employee creating fictitious vendors to generate unauthorized payments?

Accepted Answer

Shell company scheme

Answer

Payroll fraud

Answer

Expense reimbursement fraud

Answer

Check kiting

Question 6

Ghost employee fraud is classified under which major category of the ACFE Fraud Tree?

Accepted Answer

Asset misappropriation

Answer

Financial statement fraud

Answer

Corruption

Answer

Money laundering