Free ACFE CFE-Financial-Transactions-and-Fraud-Schemes Exam Dumps Questions & Answers

A ____________ can be very costly for an organization to undertake, both in terms of money and time spent.

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

• A.Management must disclose potential losses from ongoing litigation even when it is unlikely that the related liability will result in a future obligation.
• B.All information relating to the company must be disclosed in the financial statements, regardless of materiality.
• C.Events occurring after the close of the reporting period that might significantly affect the financial statements do not need to be disclosed.
• D.Changes in accounting principles must be disclosed in the financial statements.

Which of the following is a method of identity theft prevention that is recommended for businesses?

• A.Use encryption only when sending personal information externally through a hardwired internet connection
• B.Audit practices involving the handling of information only when regulators require it
• C.Use government identification numbers as employee identification numbers
• D.Collect government identification numbers from customers only when legally required to gather that information

Statistical sampling enables the examiner to predict the occurrence rate for the population and therefore determine with some accuracy the error rate, or the potential for fraud.

• A.False
• B.True

Forced reconciliation of the account says:

• A.To conceal write-offs is to change the perpetual inventory record so that it matches the physical inventory count.
• B.To conceal shrinkage is to alter inventory record so that it matches the physical inventory count.
• C.To conceal shrinkage is to change the perpetual inventory record so that it matches the physical inventory count.
• D.To conceal inventory is to alter shrinkage record so that it matches the physical inventory count.