- Exam Code: CFE-Fraud-Schemes-and-Financial-Crimes
- Exam Name: Certified Fraud Examiner -Fraud Schemes and Financial Crimes
- Updated: Aug 11, 2026
- Q & A: 355 Questions and Answers
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| Section | Weight | Objectives |
|---|---|---|
| Industry-Specific Financial Crimes | 15–25% | - Insurance fraud - Healthcare fraud - Real estate and securities fraud - Financial institution fraud - Cyber-enabled and cryptocurrency fraud |
| Theft of Data and Intellectual Property | 5–10% | - Safeguarding proprietary information - Data and IP theft methods - Corporate espionage |
| Asset Misappropriation – Non-Cash Assets | 5–10% | - Inventory and equipment theft - Concealment techniques - Misuse of assets |
| Identity Theft | 1–5% | - Prevention and detection - Types and techniques |
| Asset Misappropriation – Cash Receipts | 5–10% | - Prevention and detection methods - Cash larceny schemes - Cash skimming schemes |
| Corruption Schemes | 5–10% | - Conflicts of interest - Bribery and kickbacks - Illegal gratuities and extortion |
| Accounting Concepts | 5–10% | - Basic accounting principles - Internal control fundamentals - Financial statements structure - Recording and summarizing transactions |
| Financial Statement Fraud | 10–15% | - Timing and disclosure manipulations - Expense and liability understatements - Detection and red flags - Revenue and asset overstatements |
| Asset Misappropriation – Cash Disbursements | 10–15% | - Payroll schemes - Check and payment tampering - Billing schemes - Expense reimbursement schemes |
1. In Cressey's fraud triangle, its three legs are Opportunity, Pressure, and:
A) Rationalization
B) Violation
C) None of the above
D) Isolation
2. Revenue is recognized when it is:
A) Realized and Evidenced
B) Realized and Earned
C) Fictitious and Earned
D) All of the above
3. Which of the following actions could management take to make a company's profits appear stronger than they are?
A) Understating revenue
B) Overstating expenses
C) Fabricating product-return liabilities
D) Failing to disclose warranty costs
4. Jay works in the warehouse of a retail company. When a shipment of 100 pieces of jewelry arrives, Jay hides
20 pieces in the waste containers behind the store so he can retrieve them at the end of the workday. Jay sends a receiving report to accounts payable indicating that all 100 pieces arrived. However, he alters a copy of the receiving report to exclude the 20 pieces he hid so that the physical inventory matches the inventory records.
What type of scheme did Jay commit?
A) A purchasing and receiving scheme
B) A false sale scheme
C) A register disbursement scheme
D) A skimming scheme
5. Which of the following measures would be MOST EFFECTIVE in helping a company detect electronic payment tampering fraud?
A) Investigate customer complaints about any payments that were applied to their account later than they expected.
B) Ask all vendors if they have received any duplicate payments.
C) Review any non-payroll payments made to employees.
D) Complete bank reconciliations once a quarter to catch any anomalies in payment amounts and payees.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: C |
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