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Question 1
An employee in the accounts receivable department steals a customer's payment before it is recorded in the company's books. To conceal the theft, the employee applies a payment from another customer to the first customer's account. This fraudulent scheme is best described as:
Correct Answer:
Lapping
Question 2
Which of the following is considered a 'red flag' or behavioral indicator that might suggest an employee is involved in an asset misappropriation scheme?
Correct Answer:
Consistently refusing to take vacation or share job duties.
Question 3
A payroll clerk creates a fictitious employee in the company's payroll system and arranges for the ghost employee's paycheck to be directly deposited into a bank account controlled by the clerk. This type of asset misappropriation is a form of:
Correct Answer:
Fraudulent Disbursement
Question 4
What is the primary difference between cash larceny and skimming?
Correct Answer:
Cash larceny is the theft of cash that has already been recorded on the company's books, while skimming is the theft of off-book funds.
Question 5
An employee uses a company credit card to purchase a home theater system for personal use and submits the expense report with a receipt from a business dinner of the same amount. This is an example of which type of asset misappropriation scheme?
Correct Answer:
Expense Reimbursement Fraud
Question 1
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About this Exam

Prepare with the CFE Exam practice quiz. This question bank includes 458 questions covering fraud, company, examiner, employee, and scheme. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CFE Exam

This practice set contains 458 questions from the matching question bank and focuses on fraud, company, examiner, employee, and scheme. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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