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acfe CFE_FINANCIAL_TRANSACTIONS_AND_FRAUD_SCHEMES

Exam contains 191 questions

Page 3 of 32

Question 13 🔥

Which of the following scenarios is an example of upcoding?

Which database solution meets these requirements?

A. Dr. Johnson, a psychiatrist, regularly sees patients for sessions lasting less then forty minutes, but she submits the claims with a code that indicates the sessions were sixty minutes long.

Highly voted

B. Victor receives payment in exchange for undergoing an unnecessary medical procedure that is then billed to his health care program.

Highly voted

C. Margot inflates a medical bill she is seeking reimbursement for by adding an additional digit to the amount charged.

Highly voted

D. Dr. Hernandez uses four procedure codes when submitting a claim for a coronary bypass he performed that is supposed to be billed using a single procedure code.

Highly voted

Discussion of the question

Question 14 🔥

Which of the following measures is MOST LIKELY to prevent cash larceny schemes from occurring?

Which database solution meets these requirements?

A. Having all employees use the same cash register

Highly voted

B. Requiring the accounts receivable clerk to deposit cash receipts at the bank and perform bank reconciliations

Highly voted

C. Restricting other employees from performing the duties of an employee on vacation

Highly voted

D. Announcing that the company performs surprise cash counts

Highly voted

Discussion of the question

Question 15 🔥

Which of the following is a method that a fraudster might use to conceal inventory shrinkage?

Which database solution meets these requirements?

D. All of the above

Highly voted

A. Placing empty boxes on warehouse shelves

Highly voted

B. Selling merchandise without recording the sale

Highly voted

C. Falsely increasing the perpetual inventory figure

Highly voted

Discussion of the question

Question 16 🔥

Financial statement fraud can BEST be described as:

Which database solution meets these requirements?

A. The misstatement or omission of financial information for the purpose of personal gain

Highly voted

B. The intentional or accidental misstatement of amounts in the financial statements

Highly voted

C. The intentional understatement of assets or overstatement of liabilities on the balance sheet

Highly voted

D. The deliberate misrepresentation of a company’s financial condition

Highly voted

Discussion of the question

Question 17 🔥

Which of the following statements is TRUE with regard to the income statement?

Which database solution meets these requirements?

D. Gross revenue is the total amount of sales before deductions are applied.

Highly voted

A. Gross profit is equal to revenues less operating expenses.

Highly voted

B. Net profit is the difference between total sales and the cost of goods sold.

Highly voted

C. A company’s cash balance is usually the first line item listed.

Highly voted

Discussion of the question

Question 18 🔥

Which of the following is a red flag that might indicate the existence of a need recognition scheme?

Which database solution meets these requirements?

A. The purchasing entity’s materials are being ordered at the optimal reorder point.

Highly voted

B. The purchasing entity has a large list of backup suppliers.

Highly voted

C. The purchasing entity has unusually high requirements for stock and inventory levels.

Highly voted

D. The purchasing entity has few surplus items written off as scrap.

Highly voted

Discussion of the question

Ready to Pass Your Certification Test

acfe CFE_FINANCIAL_TRANSACTIONS_AND_FRAUD_SCHEMES

Exam contains 191 questions

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