Top ACFE CFE-Financial-Transactions-and-Fraud-Schemes Courses Online - Updated [Mar-2026]
CFE-Financial-Transactions-and-Fraud-Schemes Practice Dumps - Verified By TopExamCollection Updated 237 Questions
One of the four parts of the CFE exam is the Financial Transactions and Fraud Schemes section. This section covers a range of topics related to financial transactions, including cash receipts and disbursements, accounts receivable and payable, inventory, and payroll. It also covers various types of fraud schemes, such as skimming, larceny, and embezzlement, as well as the methods used to detect and prevent these schemes.
Earning the ACFE CFE-Financial-Transactions-and-Fraud-Schemes Certification demonstrates a professional's expertise and knowledge in detecting and preventing financial fraud. Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam certification is highly valued in various industries, including banking, insurance, and government agencies. Professionals who hold this certification are equipped with the skills to identify suspicious financial transactions, investigate fraud schemes, and prepare reports for management and law enforcement. The ACFE CFE-Financial-Transactions-and-Fraud-Schemes Certification Exam is a rigorous and challenging certification program that requires commitment and dedication, but it is also a valuable investment in a professional's career.
The ACFE CFE-Financial-Transactions-and-Fraud-Schemes exam can be taken by professionals from various fields, including accounting, finance, and law enforcement. Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam certification is globally recognized, and it stands as a testament to an individual's knowledge and professionalism in detecting and preventing financial fraud in different industries. The ACFE CFE-Financial-Transactions-and-Fraud-Schemes Exam is essential to anyone seeking to make a career in fraud examination, forensic accounting, and risk management. In summary, the ACFE CFE-Financial-Transactions-and-Fraud-Schemes Exam makes it possible for professionals to develop a high level of expertise in fraud detection and become certified in a globally recognized qualification.
NEW QUESTION # 101
Which of the following ratios can be used to assess a company's ability to meet sudden cash requirements?
- A. Receivable turnover ratio
- B. Quick ratio
- C. Debt-to-equity ratio
- D. Asset turnover ratio
Answer: D
Explanation:
Explanation/Reference: https://www.investopedia.com/ask/answers/062215/what-are-financial-risk-ratios-and-how-are-they-used-measure-risk.asp
NEW QUESTION # 102
Undisclosed payments made by vendors to employees of purchasing companies are referred to as:
- A. Kickbacks
- B. Presolicitaion
- C. None of the above
- D. Bid-rigging
Answer: A
NEW QUESTION # 103
A fraudster uses a victim's name, government identification number, and birthdate to impersonate the victim and open a credit card account in the victim's name. This scheme can BEST be described as:
- A. Criminal identity theft
- B. Traditional identity theft
- C. New account identity theft
- D. Synthetic identity theft
Answer: B
Explanation:
Explanation/Reference: https://www.acfe.com/selfstudy.aspx?zid=2c92a0fe6a07e3e5016a27279adf4045
NEW QUESTION # 104
Which of the following is NOT a distinguishing feature of a Ponzi scheme?
- A. Participants attempt to recruit as many new members as possible.
- B. Promoters of Ponzi schemes engage in little or no valid commerce or investments.
- C. Participants believe that they are making a legitimate investment.
- D. Previous investors are paid with money from new members.
Answer: D
Explanation:
Explanation/Reference: https://www.acfe.com/ponzi-schemes.aspx#:~:text=A%20Ponzi%20scheme%20is%20an,actually%20a%20distribution%20of%20capital
NEW QUESTION # 105
Which of the following statements regarding new account fraud is MOST ACCURATE?
- A. Mobile deposits are at high risk for new account fraud because fraudsters can easily make deposits using forged or counterfeit images.
- B. It is more likely that fraud will occur in established accounts than in accounts that are still considered to be new.
- C. Automated teller machines (ATMs) are rarely targets of new account fraud because it is easier for criminals to commit fraud via face-to-face transactions.
- D. New account fraud can be defined as any fraud that occurs on an account during the first six months that it is open.
Answer: A
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:New account fraud occurs when fraudsters open accounts with false or stolen identities to exploit financial institutions before controls detect suspicious activity. Mobile deposits are particularly vulnerable because criminals can use counterfeit or altered images to deposit fraudulent checks quickly. This aligns with the Fraud Examiners Manual (2020) discussion of high-risk delivery channels for new account fraud.
* Analysis of Incorrect Options:
* A. Established accounts - Incorrect; fraud risk is higher in new accounts due to limited history and weaker controls.
* C. Six months definition - Not an ACFE standard; there is no fixed six-month definition.
* D. ATMs rarely targeted - Incorrect; ATMs are frequently exploited in new account fraud schemes.
* Key Concept: New account fraud in identity theft and corruption-related schemes.
Reference: ACFE Fraud Examiners Manual (2020), Identity Theft and New Account Fraud.
NEW QUESTION # 106
Which of the following must be present for a fraud to exist?
- A. A material false statement
- B. Knowledge that the statement was false when it was uttered
- C. All of the above
- D. Reliance on the false statement by the victim
Answer: C
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:For fraud to exist, several legal elements must be established. These include: (1) a material false statement made by the perpetrator, (2) knowledge of the falsity of that statement (scienter or intent to deceive), and (3) reliance on the false statement by the victim, resulting in harm or damages. The Fraud Examiners Manual (2020 International Edition) explains that all elements must be present for a fraud case to be sustained. Thus, the correct answer is D. All of the above.
* Analysis of Incorrect Options (Distractors):
* A. A material false statement - A false statement alone is insufficient unless there is intent to deceive and victim reliance.
* B. Knowledge that the statement was false when it was uttered - Intent is critical, but without the victim's reliance and damages, fraud is incomplete.
* C. Reliance on the false statement by the victim - Victim reliance is necessary, but without a knowingly false statement and intent, fraud cannot be proven.
* Key Concept:The essential legal elements of fraud.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Law section - The Law Related to Fraud, which explains the legal foundation and elements necessary to establish fraud.
NEW QUESTION # 107
Perceived certainty of detection is directly related to employee theft for respondents in all industry sectors, that is, the stronger the perception that theft would be detected, the more the likelihood that the employee would engage in deviant behavior.
- A. True
- B. False
Answer: B
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:This statement is False. Research in occupational fraud consistently shows that when employees believe there is a strong likelihood of being caught, they are less likely to engage in theft or deviant behavior. Deterrence theory emphasizes that perceived certainty of detection is one of the most effective controls against occupational fraud.
* Key Concept:Deterrence through perceived detection.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Fraud Theory - Perceived Detection and Deterrence.
NEW QUESTION # 108
Which of the following would NOT be considered a conflict of interest?
- A. Ernest hires his brother, John, to provide vending services to his employer's lunch areas, but he does not disclose their relationship.
- B. Robert works for Muir's Printing Services on weekdays and Winsted Cafe on weekends, but he does not tell either employer about the other job.
- C. Harriet owns a significant amount of stock in a company she regularly buys her employer's office supplies from, but her employer is unaware of this fact.
- D. Jennifer is on the board of directors of two companies that compete in the retail market, but she does not tell either company about her role at the other.
Answer: B
NEW QUESTION # 109
Skimming is:
- A. The addition of cash from a victim entity prior to its entry in an accounting system.
- B. None of above
- C. The removal of cash from a victim entity prior to its entry in an accounting system.
- D. The removal of cash from a victim entity after its entry in an accounting system.
Answer: C
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:Skimming is defined as the theft of cash before it is recorded in the books. Because the stolen funds are never entered into the accounting system, this is often referred to as an "off-book" fraud. It is distinct from cash larceny, which occurs after cash has been recorded.
* Analysis of Incorrect Options:
* B. The addition of cash - Incorrect; skimming involves removal, not addition.
* C. Removal after entry - This describes cash larceny, not skimming.
* D. None of above - Incorrect since option A is correct.
* Key Concept:Skimming schemes - off-book cash theft.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Cash Receipts - Skimming Schemes.
NEW QUESTION # 110
Jonathan, a Certified Fraud Examiner (CFE), is tasked with identifying potential indicators of intrusion into his employer's computer network. Which of the following might indicate that the organization's network has been compromised or accessed without authorization?
- A. The network is receiving data from a country where one of the organization's suppliers is located.
- B. Network users are prompted to install unfamiliar software onto their computers.
- C. Users are denied access to network files they do not typically use in their organizational role.
- D. When logging into the computer network, employees receive a reminder to change their log-in passwords before they expire.
Answer: B
NEW QUESTION # 111
Blue sold $1,000 worth of merchandise and collected the payment from her customer in currency, but she only recorded the sale of $800 worth of merchandise. Blue turned $800 over to her employer and kept the remaining
$200. Blue's scheme is BEST classified as:
- A. A cash larceny scheme
- B. A false billing scheme
- C. An understated sales (skimming) scheme
- D. An unrecorded sales (skimming) scheme
Answer: C
Explanation:
Explanation/Reference: https://yellowbook-cpe.com/misappropriation-of-cash-larceny-skimming.html
NEW QUESTION # 112
Linda, an assistant bank manager, purchases a new car that she cannot afford on her salary. To make her car payments, she takes money from a customer's account and then adjusts the bank's general ledger to cover the missing amount. Which of the following BEST describes Linda's scheme?
- A. Unauthorized disbursement of funds
- B. Unauthorized withdrawal
- C. Moving money from dormant accounts
- D. False accounting entry
Answer: D
Explanation:
Explanation/Reference: https://www.actionfraud.police.uk/a-z-of-fraud/false-accounting-fraud
NEW QUESTION # 113
The more power a person has over the bidding process, the more likely the person can influence the selection of a supplier.
- A. True
- B. False
Answer: A
NEW QUESTION # 114
Which of the following is the MOST APPROPRIATE technique for detecting a nonconforming goods or services scheme?
- A. Comparing the direct and indirect labor account totals from the prior year to the current year
- B. Interviewing procurement personnel about the presence of any red flags
- C. Determining if contract costs have exceeded or are expected to exceed the contract value
- D. Examining change orders that increase the price of the existing contract
Answer: C
Explanation:
Explanation/Reference: https://www.acfe.com/uploadedFiles/ACFE_Website/Content/review/cpf/07-Performance-Schemes.pdf
NEW QUESTION # 115
Which of the following actions can make mobile payments more secure?
- A. Using the same log-in credentials for all payment applications
- B. None of the above
- C. Disabling the biometric features on a newer mobile device
- D. Activating biometric authentication to verify the user's identity
Answer: D
Explanation:
Detailed Explanation:
* Rationale for Correct Answer: Biometric authentication (e.g., fingerprint, facial recognition) strengthens payment security by ensuring that only the authorized user can approve transactions, reducing the risk of unauthorized access even if credentials are stolen.
* Analysis of Incorrect Options:
* A - Using the same credentials increases exposure to credential-stuffing attacks.
* C - Disabling biometrics weakens, not strengthens, security.
* D - Incorrect since B is valid.
* Key Concept: Cyberfraud prevention - authentication and mobile payment controls.
Reference: ACFE Manual, Fraud Prevention and Deterrence - Cybersecurity Measures.
NEW QUESTION # 116
In which phase of competitive bidding process, fraudsters attempt to influence the selection of a contractor by restricting the pool of competitors from whom bids are sought?
- A. Need recognition
- B. Submission
- C. Solicitation
- D. False specification
Answer: C
NEW QUESTION # 117
Verify supporting documentation on outstanding checks written for a material amount is a test used to conduct for:
- A. Check disbursement
- B. Cut-off statements
- C. Bank confirmation
- D. Bank confirmation
Answer: C
NEW QUESTION # 118
Which of the following is an example of a corruption scheme?
- A. A public company omits recurring costs from its financial statements to make the company appear more profitable than it is.
- B. Two coworkers steal confidential information from their employer and use the stolen data to start a competing business.
- C. A warehouse manager receives twenty laptops in a shipment but excludes five of the laptops from the records so that they can be sold to third parties.
- D. A vendor offers the use of a beach house to a government procurement agent for free after the agent awards a contract to the vendor.
Answer: D
NEW QUESTION # 119
Cynthia receives a fraudulent text message that appears to be from her credit card company. The message claims that the company has detected suspicious card transactions and provides a link for her to click to sign into her account for more information. Cynthia is MOST LIKELY being targeted by which of the following types of social engineering schemes?
- A. Vishing
- B. Catfishing
- C. Smishing
- D. Pharming
Answer: C
Explanation:
Detailed Explanation:
* Rationale for Correct Answer: Smishing (SMS phishing) uses fraudulent text messages to trick victims into clicking malicious links or revealing credentials. This matches Cynthia's scenario.
* Analysis of Incorrect Options:
* A. Vishing - Voice phishing by phone call, not text message.
* C. Catfishing - Fake online persona in social contexts, not financial fraud via text.
* D. Pharming - Redirecting users to fake websites via DNS manipulation, not text messages.
* Key Concept: Social engineering methods-email (phishing), phone (vishing), text (smishing).
Reference: ACFE Manual, Fraud Prevention and Deterrence - Social Engineering Attacks.
NEW QUESTION # 120
The price of an asset on which the asset is selling at on the open market in a transaction between a willing buyer and a wiling seller is called:
- A. Absolute value
- B. Cost value
- C. material value
- D. Fair value
Answer: D
NEW QUESTION # 121
_________ is defined as a person who works for the victim organization and who is primary culprit
Answer:
Explanation:
Principal perpetrator
NEW QUESTION # 122
Which of the following measures will MOST LIKELY prevent cash larceny schemes from occurring?
- A. Having all employees use the same cash register for their transactions
- B. Keeping employees unaware that the company performs surprise cash counts
- C. Restricting other employees from performing the duties of an absent employee
- D. Assigning the duties of depositing cash receipts and performing bank reconciliations to different employees
Answer: D
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:Cash larceny involves the theft of incoming cash after it has been recorded. Strong segregation of duties is critical to prevent concealment. By separating cash deposit responsibilities from bank reconciliation duties, one employee cannot both steal funds and cover their tracks.
* Analysis of Incorrect Options:
* A. Restricting substitution - Weakens controls; job rotation and cross-training help prevent fraud.
* C. Same register use - Reduces accountability, making theft harder to trace.
* D. Surprise cash counts - Strong detective control, but not as preventive as segregation of duties.
* Key Concept: Preventing cash larceny through segregation of duties.
Reference: ACFE Fraud Examiners Manual (2020), Cash Receipts: Cash Larceny Controls.
NEW QUESTION # 123
A client contacts Emma, a Certified Fraud Examiner (CFE), and explains that they prepaid a commission to a broker for help with obtaining a loan. However, after sending the payment for services, the client did not receive a response from the broker and is unable to contact them. This type of fraud is known as a(n):
- A. Split deposit scheme
- B. Advance-fee scheme
- C. Scavenger scheme
- D. Bait and switch scheme
Answer: B
NEW QUESTION # 124
A fabricated name and the post office box that an employee uses to collect disbursements from false billings is called:
- A. Perpetrator check
- B. Accomplice residence
- C. Cash generator
- D. Shell company
Answer: D
NEW QUESTION # 125
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New (2026) ACFE CFE-Financial-Transactions-and-Fraud-Schemes Exam Dumps: https://www.topexamcollection.com/CFE-Financial-Transactions-and-Fraud-Schemes-vce-collection.html
