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ACFE Certified Fraud Examiner -Fraud Schemes and Financial Crimes Sample Questions:

1. Which of the following statements regarding financial statement disclosures is TRUE?

A) Management must disclose potential losses from ongoing litigation if the likelihood of the related liability is reasonably possible.
B) Changes in accounting principles do not need to be disclosed in the financial statements.
C) Related-party transactions only need to be disclosed if they might financially harm the company's stakeholders.
D) Events occurring after the close of a reporting period that might significantly affect the financial statements do not need to be disclosed.

2. ________, one of the synonyms for fraud, implies deceiving so thoroughly as to obscure the truth.

A) Delude
B) Deceive
C) Beguile
D) Mislead

3. One of the simplest ways to justify unacceptable conduct and avoid guilt feelings is to invent a good reason for ________.

4. Which of the following is the criterion for bid solicitation?

A) To withdraw low bids
B) Containing false statements
C) To falsify the bid log
D) Allowing the purchaser to discuss possible employment with the contractor

5. The principle behind full disclosure is:

A) Any material deviation from GAAP must be explained to the reader of the financial information.
B) Any material deviation from SAS must be explained to the writer of the financial information.
C) Any material deviation from GAAP must be explained to the writer of the financial information.
D) None of above

Solutions: