Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

ACFE - CFE 2020 > CFE Financial Transaction and Fraud Schemes > Flashcards

CFE Financial Transaction and Fraud Schemes Flashcards

1
Q

Testimony concerning firsthand observations is comes from what type of witness?

A

Lay witness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Main function of SEC Rule 10b-5

A

Prohibits false statements and the fraudulent activity in connection with the purchase or sale of any security.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

In civil litigation cases, the plaintiff usually does what?

A

Offers evidence first.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Churning is what?

A

The excessive trading of a customer account to generate commission while disregarding the customer’s interests.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

To commence an involuntary bankruptcy proceeding, there must be at least:

A

12 or more creditors at least 3 are needed to file

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

US Federal Rule of Evidence 702 requires judges to do what before allowing an expert witness to testify?

A

Will the expertise of the witness assist the jury in understanding the evidence?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

An investigator can be held liable for a true statement made about a suspect when they?

A

Publicly disclose private facts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

A counterclaim made a defendant is against whom?

A

The original plaintiff in the action.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is necessary to prove concealment of material facts?

A

D had knowledge of material fact that he failed to disclose.
D acted with intent to mislead the victim.
D failed to disclose a material fact that he had a duty to disclose.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

To determine if a misrepresentation in an offer or sale of securities is material, an examiner should consider?

A

Whether a reasonable investor would wish to know the information to make an informed decision.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Does the Foreign Corrupt Practices Act prohibit all payments to foreign officials?

A

No, facilitating or grease payments are permitted, bribes are not.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

CIP’s are?

A

Customer Identification Programs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

An expert’s opinion at trial may only be based on evidence that ha already been entered into evidence?

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Mediation Agreements are?

A

Enforceable as binding contracts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Evidence proven by inference or indirectly is?

A

Circumstantial evidence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Defamation is?

A

An unprivileged publication of a false statement about a person that causes harm to that person’s reputation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

During pretrial discovery, the prosecution is not

A

Entitled to the D’s work product if D did not ask for the prosecution’s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Death of a taxpayer can be used as a defense to tax fraud allegations?

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

These agencies investigate and prosecute bankruptcy fraud

A

FBI investigates and USAO prosecutes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Tax evasion is

A

any fraudulent actions that a taxpayer commits to avoid reporting or paying taxes..

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Tax avoidance is

A

legal means of lowering ones tax bill through legitimate means.
Tax Avoidance is legal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Money Service Business (MSB) examples

A

currency exchangers, check cashers, money transmitters

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

A witness can be impeached by introducing prior arrests/convictions?

A

Yes, but not DUI

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Types of securities?

A

stocks, bonds, and CD’s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
If an employee embezzles money, reports the illegal income their federal taxes and pays it back, what may they do on their tax return?
deduct the amount stolen and paid back as a loss incurred in a transaction entered into for profit.
26
A reason why an identity thief would not choose a business vs individual?
Businesses usually engage in less transactions than individuals
27
In a construction contract, the amount withheld from each draw by the contractor is referred to as?
Retainage or holdback
28
Vertical analysis is?
the expression of the relationship or percentage of component items to a specific base item on the income statement.
29
Horizontal analysis is?
A technique for analyzing the percentage change in the individual financial statement items from one year to the next.
30
Ratio analysis is?
A means of measuring the relationship between any two different financial statement amounts.
31
What happens when an employee records a fictitious refund of goods at the employee's cash register?
The inventory is overstated.
32
Factoring groups do what from telemarking operations at a discount?
Buy credit card receipts
33
Employment identify theft is?
When someone impersonates another to get a job.
34
Failure to record corresponding revenues and expenses in the same accounting period may result in?
Making sales revenue from pure profit, inflating earnings. In the next period, earning would have fallen by the same amount.
35
Failing to record bad debt expenses for the period will result in fraudulently overstated accounts receivables?
True
36
Physical access controls refer to?
The process by which users are allowed to access physical objects, like builidngs
37
Logical access controls are?
tools used to control access to computer information systems.
38
Bid tailoring schemes do what?
A procurement employee, often in collusion with a contractor, drafts bid specifications in a way that give unfair advantage to a certain contractor.
39
Entries to the left side of an account are?
Debits. Asset and expense accounts are increased with debit and decreased by credits. Liabilities, owner equity and revenue accounts are increased with credits and decreased by debits.
40
A fraudster looking to conceal inventory shrinkage would do what?
Falsely decrease the perpetual inventory to match the lower physical inventory count.
41
Assets are generally presented on the balance sheet in what order?
In order of liquidity.
42
Lapping is?
Crediting one account by taking money from another to hide skimming.
43
SPI is?
Safeguarding Proprietary Information
44
Quick Ratio (a/k/a acid test ratio)
(cash + marketable securities + receivables) / current liabilities compare quick assets over current liabilities
45
Using a stolen credit card number to purchase goods is?
An account take over.
46
Nonconforming goods or services fraud is (a/k/a product substitution or failure to meet contract specifications)?
Attempts by contractors to deliver goods or services that the procuring entity that do not conform to the contract specs.
47
ID Theft Baiting is?
Tricking victims into inserting malware infected data storage into their computers.
48
The statement of cash flow activities contains the following:
cash flows from operating activities cash flows from investing activities cash flows from financing activities
49
Large amounts over overdue accounts receivable on the books is red flag of a fictitious revenue scheme?
True
50
Most shell companies schemes involve the purchase of fictitious?
Services
51
Corruption definition
The wrongful use of influence to procure benefit for the actor or other person, contrary to the the duty or rights of others.
52
Competitive bidding mechanisms (4 stages)
Presolicitation, solicitation, bid evaluation and award, post award and administration phases.
53
A company's income statement shows?
How much profit (or loss) earned over a particular period of time.
54
Unbundling (healthcare fraud) occurs when:
A provider charges a comprehensive code as well as one or more component codes.
55
SMiShing is
A hybrid of phishing and short message service (SMS) that tries to dupe the victim into providing sensitive data
56
Rock phisher does what?
Uses botnets to send massive amounts of phishing emails that contain a message from a financial institution and fraud URL.
57
Debits increase:
asset and expense accounts
58
Asset turnvoer ratio is
net sales / average total assets and used to determine the efficiency with which assets resources are used.
59
The state of change ion owner's equity acts as the connecting link between which two financial statements?
Income statement and balance sheet
60
Pharming is?
An attach in which a user is fooled into entering sensitive data into a malicious website that imitate s legitimate one
61
4 main types of reimbursement schemes
mischaracterized expenses overstated expenses fictitious expenses Multiple reimbursements
62
The underlying assumption that a business will continue indefinitely is?
Going concern.
63
DRG is?
Diagnostic related groupings.
64
DRG Creep occurs when?
Medical staff manipulate diagnostic codes to increase reimbursement.
65
Debt to equity ratio is?
Total liabilities by total equity.
66
What information security goal should e-commerce systems endeavor to meet for its users and asset holders?
Non-repudiation (parties cannot deny transaction - done through digital signatures, time stamps, etc).
67
An FBAR (report of foreign bank and financial accounts) must be filed if?
the aggregate balance of all foreign financial accounts owned or controlled by a citizen is over $10K
68
Frivolous tax return?
A return that is incorrect on its face value or does not contain enough info to determine the tax liability.
69
Wire fraud requires an interstate or foreign
communication
70
A mistake is not a legal defense that may properly be used in a US criminal case?
False
71
Under the General Data Protection Regulation, an organization must inform data subjects what?
That they can withdraw their consent for the collection of data at any time.
72
The stage of money laundering schemes where it is most often detected?
Placement
73
CFE may not testify as to the?
guilt or innocence of someone
74
An arrest occurs in the US when?
A reasonable person does not feel they are free to leave.
75
To prove a claim of fraudulent misrepresentation of material facts, the defendant must have done?
Made a false statement The false statement was material The def. knew the misrepresentation was false
76
In an inquisitorial judicial process, who drives the evidence gather portion of the proceedings (fact finding)?
the judge
77
Mail fraud does not need to contain?
false or fraudulent representations
78
Work product doctrine only applies to?
Documents and things prepared in anticipation of litigation or for trial.
79
What must be proven to establish a perjury offense?
Def. made a false statement. Def. made the statement while under oath. The false statement was material or relevant to the proceedings. Def. made the statement with knowledge of its falsity.

ACFE - CFE 2020 (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions