Free ACFE CFE Practice Exam with Questions & Answers | Set: 5

An employee sells goods or services to a customer, collects the customer’s payment, but makes no record of the sale.

An employee buy goods or services from a customer, drop the customer’s payment, but makes no record of the purchase.

An employee sells goods or services to a stakeholder, collects the stakeholder’s payment and makes record of the sale too.

An employee buy goods or services from a stakeholder, drop the stakeholder’s payment and makes record of the purchase too.

When the price is not contingent on some future events

The transaction includes an option to exchange the product for others.

A service or membership fee is not subject predictable cancellation during the contract period.

Payment terms are not extended for a substantial period.

Creates or reinforce a false impression

Fails to correct a false impression

Fails to disclose a known lien, adverse claim or other legal impediment

All of the above

True

False

Slow growth or usual profitability, when not compared to other companies in the same industry.

Usual growth in the number of days purchase in receivables

A significant volume of sales to entries whose substance and ownership is not known.

A usual surge in purchase by a majority of units within a company, or of purchase recorded by corporate headquarters.

when an employee must have some kind of ownership or employment interest in the vendor submitting the invoice.

when a salesman must have some kind of ownership or employment interest in the vendor submitting the sales.

when a purchaser must have some kind of ownership or employment interest in the vendor submitting the purchase.

when a dealer must have some kind of dealership interest in the vendor submitting the stock.

Tangible Assets

Intangible Assets

Forced Assets

None of above

Internal audits

Accidents

Internal controls

occupational frauds