acfe cfe financial transactions and fraud schemes practice test

When situational pressures and perceived opportunities are low and personal integrity is high,
occupational fraud is much more likely to occur than when the opposite is true.

• A. True
• B. False

In Fraud scale pressure, opportunity and integrity variables all results in a list of ___ possible red
flags or indicators of occupational fraud and abuse.

• A. 81
• B. 82
• C. 83
• D. 84

__________ can be defined as conduct detrimental to the organization and to the employee.

• A. Employee deviance
• B. Employee theft
• C. Employee fraud
• D. All of the above

CORRECT TEXT
______________ is required not only for theft, but for procedures to detect errors, avoid waste and
insure a proper amount of inventory is maintained.

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

According to Hollinger and Clark for Policy development, management must pay attention to:

• A. A clear understanding regarding theft behavior
• B. Enforcement of sanctions
• C. Both A & B
• D. Neither A nor B

CORRECT TEXT
_________ is defined as a person who works for the victim organization and who is primary culprit

According to a survey, in principal perpetrator, males in a majority of cases, accounting for ___
percent of frauds versus ___ percent in which a female was the primary culprit.

• A. 62 versus 36
• B. 61 versus 39
• C. 62 versus 37
• D. None of the above

Organizations that had external audits actually had higher median losses and longer lasting fraud
schemes than those organizations that were not audited.

• A. True
• B. False

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