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ACFE Certified Fraud Examiner -Fraud Schemes and Financial Crimes Sample Questions:

1. Which of the following is NOT a justifiable reason to depart from generally accepted accounting principles (GAAP)?

A) Following GAAP would produce misleading results on financial statements
B) To avoid overstating assets and/or income
C) To better reflect the substance of a transaction
D) Reporting a transaction that is compliant with GAAP would be more expensive

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

A) False
B) True

3. A journal in which all sales made on credit or cash are listed is:

A) Disbursement journal
B) General journal
C) Accounts payable journal
D) Accounts receivable journal

4. Accounting records are designed to be kept on subjective rather than objective evidence.

A) False
B) True

5. Which of the following is NOT a justifiable reason to depart from generally accepted accounting principles (GAAP)?

A) The expected costs associated with following GAAP would exceed the expected benefits of compliance.
B) It is likely that assets would be understated and liabilities would be overstated.
C) The application of GAAP could produce misleading financial statements.
D) A transaction is considered immaterial and therefore irrelevant to the accurate interpretation of financial statements.

Solutions: