CFE Book questions Flashcards
(19 cards)
What does Embezzlement mean?
The fraudulent appropriation of funds or property by a person to whom it has been entrusted.
What does Skimming mean?
Stealing cash from an organization before it is recorded on the books.
What does Fraudulent disbursements mean?
Making unauthorized payments or issuing checks to fractions vendors.
What does corruption mean?
Top of fraud involves the abuse of entrusted power for private gain. Bribery , extortion and conflicts of interest.
What is considered Bribery?
What is considered Extortion?
What is considered conflicts of interest?
What is financial statement fraud ofter perpetrated by?
What is a Fraudulent red flag?
What is early detection and prevention?
what is considered Unusual accounting practices? and would this be a red flag Yes or No and explain why?
What is a weak internal controls mean: ? Would this be considered a RED FLAG? YES or NO and explain why?
What does it mean by pressure to meet financial targets? Would this be considered a RED FLAG? Yes or No and explain Why?
What does domination management mean? Would this be considered a RED FLAG ? Yes or No and explain why?
How do you prevent financial statement fraud ? Would it include implement strong internal controls, promote a culture of ethical behavior and encourage whistle blowing , regular audits and independent reviews of financial statements help detect and deter fraud. YES or NO
Yes - Implement strong internal controls, promote a culture of ethical behavior and encourage whistle blowing , regular audits and independent reviews of financial statements help detect and deter fraud.
What is assist misappropriation schemes?
What forms are (3) common assist misappropriation schemes?Can it involve Theft or Misuse of an organization’s assets? Yes or No
Yes - Embezzlement , Skimming, fraudulent disbursements
What does it require detecting asset misappropriation? Regular inventory checks, implementing internal controls , segregation of duties and mandatory vacations can help prevent these schemes. YES or NO
Yes all- Careful monitory of financial transactions and regular inventory checks, implementing internal controls , segregation of duties and mandatory vacations can help prevent theses schemes.
