ACFE Exam Practice Test Instant Access - No Installation Required

Question 1

Delivery has not occurred or services have not been rendered when:

AUntil installation and customer testing and acceptance has occurred.

BA written order exists but contains a right of return.

CBoth A & B

DNeither A nor B

Answer : B

Question 2

Depreciation is especially applicable when companies try to overvalue their assets and net worth; the lower their depreciation expense, the higher the company's profits.

ATrue

BFalse

Answer : A

Question 3

__________ is required if and when officers, executives or other persons in trusted positions become subjects of a criminal indictment.

AConflict of interest

BTurnaround sale or flip

CDisclosure

DResource diversion

Answer : C

Question 4

Which of the following are used in a short term skimming scheme?

AUnrecorded sales, understated sales and theft of incoming checks

BUnrecorded sales, understated sales and dual endorsements

CFalse company accounts, understated sales and theft of incoming checks

DUnderstated sales, theft of incoming checks and check-for-currency substitutions

Answer : A

Question 5

In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?

ABid-rigging

BKickbacks

CCompetitive bidding

DBid solicitation

Answer : C

Question 6

Which of the following is true for Red flags associated with fictitious revenues?

ASlow growth or usual profitability, when not compared to other companies in the same industry.

BUsual growth in the number of days purchase in receivables

CA significant volume of sales to entries whose substance and ownership is not known.

DA usual surge in purchase by a majority of units within a company, or of purchase recorded by corporate headquarters.

Answer : C

Question 7

By removing a tangible asset from the business (a debit), the books will be ___________ by the exact amount of the tangible asset misappropriated.

AJournal Entries

BOut-of-balance

CFalse debits

DNone of all

Answer : B

ACFE Certified Fraud examiner CFE Exam Practice Test