[Aug 08, 2026] Fully Updated Dumps PDF – Latest CFE-Fraud-Schemes-and-Financial-Crimes Exam Questions and Answers [Q59-Q77]

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[Aug 08, 2026] Fully Updated Dumps PDF – Latest CFE-Fraud-Schemes-and-Financial-Crimes Exam Questions and Answers

100% Free CFE-Fraud-Schemes-and-Financial-Crimes Exam Dumps to Pass Exam Easily from ExamDumpsVCE

NEW QUESTION 59
People commit financial statement fraud to:

Conceal false business performances

Preserve personal status/control

Maintain personal income

Stand outside the accounting system

NEW QUESTION 60
Several people who work in real estate collude to obtain a loan for the construction of a residential building on a property that does not exist. The co-conspirators divide the proceeds among themselves and leave the lender with no collateral to seize when loan payments are not made. Which of the following BEST describes this scheme?

Property flopping

Air loan

Phantom lien

Daisy chain

NEW QUESTION 61
Which of the following scenarios is the MOST ACCURATE example of insurer health care fraud?

While acting as an intermediary for a government health care program, the insurance company verifies provider claims before billing the government for them.

To obtain regulatory approval for increasing its rates, the insurance company submits inflated cost data for review.

After negotiating discounts with its medical providers, the insurance company provides the negotiated rate to its consumers instead of the original amount.

Upon identifying that a claimant has provided incomplete information, the insurance company refuses to pay a claim.

NEW QUESTION 62
Which of the following signs is a red flag that might indicate an entity is operating a securities business without the proper license or registration?

The entity’s website lists a prospectus for each security.

The entity has a history of regulatory filings.

The entity has a lack of customer complaints.

The entity’s promoters have unexplained gaps in their work history.

NEW QUESTION 63
The principal way to detect omitted credits from books of account is through:

Forced Balance

Trend analysis

Expense account

None of all

NEW QUESTION 64
Which of the following is a red flag that might indicate the existence of a need recognition scheme?

The purchasing entity has an unusually large list of backup suppliers available.

The purchasing entity’s materials are not being ordered at the optimal reorder point.

The purchasing entity identifies a need that can be met by various suppliers.

The purchasing entity does not have high requirements for stock and inventory levels.

NEW QUESTION 65
Baker, an employee of ABC Corporation, is the only employee who has control of the purchasing function for his department. Baker authorizes an order for supplies that ABC does not need and uses these supplies to make improvements to his house. This is an example of what kind of fraud?

Personal purchases with company funds

Pass-through scheme

Pay-and-return scheme

Theft of inventory

NEW QUESTION 66
Which of the following is the MOST APPROPRIATE technique for detecting a cost mischarging scheme?

Reviewing the inspection and testing reports of questioned goods or materials

Comparing the direct and indirect labor account totals from the prior year to the current year

Inspecting questioned goods or materials by examining packaging, appearance, and description

Examining any change orders submitted by a contractor that add new items

NEW QUESTION 67
Which of the following is FALSE concerning methods that corporate spies generally use to steal information from other organizations?

Spies often create counterfeit employee badges to gain entry into a target company.

Spies often gain direct access to a target company by obtaining employment as a security officer or a member of the maintenance staff.

Spies primarily use social engineering to search for confidential information on employee desks or workstations at the target company.

Spies use technical surveillance to obtain nondocumentary information about target companies that cannot be found through open sources.

NEW QUESTION 68
Which of the following options is the BEST example of a technical security control that organizations can use to block unauthorized or unverified transmissions?

Firewalls

Application security

Cipher locks

Data classification

NEW QUESTION 69
A special scheme in which employees know their employer is seeking to purchase a certain asset and take advantage of the situation by purchasing the asset themselves is:

Conflict of interest in sale

Turnaround sale or flip

Unauthorized sale

Written sale of unique assets

NEW QUESTION 70
Bid-rigging scheme occurs when:

An employee fraudulently assists a vendor in winning a contract through the competitive bidding process.

An employee does not assist a vendor in winning a contract through the competitive bidding process.

An employee once assists a vendor in winning a contract through a single competitive bidding process.

NEW QUESTION 71
Which of the following is NOT a method for stealing inventory and other assets?

Larceny schemes

Asset requisition and transfer

Purchasing and receiving schemes

Sales & Equipment handling

NEW QUESTION 72
Which of the following methods would NOT be helpful in detecting a skimming scheme?

Confirming customers’ unpaid account balances

Examining journal entries for false credits made to the inventory

Performing physical inventory counts

Comparing cash register totals to the cash count

NEW QUESTION 73
Which of the following statements is TRUE regarding an analytical review of financial statements in relation to inventory theft?

It is not likely that an analytical review of financial statements would help uncover instances of inventory theft.

If sales and cost of goods sold both remain unchanged, it might indicate that inventory theft has occurred.

Any significant percentage change in the cost of goods sold indicates inventory theft, regardless of the change in sales.

If the change in cost of goods sold is significantly higher than the change in sales, it might indicate inventory theft.

NEW QUESTION 74
Madison has been appointed as a bankruptcy administrator. According to the recommendations of the World Bank Principles for Effective Insolvency and Creditor/Debtor Regimes, which of the following statements concerning Madison’s role as bankruptcy administrator is MOST ACCURATE?

Madison may not force third parties with knowledge of the debtor’s affairs to provide information.

Madison may collect a debtor’s property, but a third party must dispose of it.

Madison may cancel any fraudulent contracts or transactions entered into by the debtor.

Madison may not interfere with contracts that were signed by the debtor.

NEW QUESTION 75
What type of fraud scheme would MOST LIKELY be revealed by identifying employees with the same government identification numbers?

A ghost employee scheme

A payment tampering scheme

A falsified hours and salary scheme

A fraudulent commissions scheme

NEW QUESTION 76
Which of the following statements regarding Ponzi schemes is MOST ACCURATE?

Ponzi schemes reward participants based on the number of new members recruited.

Ponzi schemes use the money acquired from new investors to pay early investors.

Ponzi schemes promise high returns in exchange for high-risk investments.

Ponzi schemes attract new contributors by promising hierarchical advancement.

NEW QUESTION 77
Which of the following is NOT one of the information security goals that should be achieved to secure an e- commerce system for users and account holders?

Availability of data

Accuracy of data

Authentication

Non-repudiation