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NEW QUESTION 40
All of the following items appear on the balance sheet EXCEPT:

A. AssetsB. Retained earningsC. LiabilitiesD. Cost of goods sold

Answer: B

Explanation:
Explanation/Reference: https://www.investopedia.com/articles/fundamental-analysis/10/creative-accounting-balance-sheet.asp

 

NEW QUESTION 41
Which of the following is the MOST APPROPRIATE technique for detecting a nonconforming goods or services scheme?

A. Examining change orders that increase the price of the existing contractB. Determining if contract costs have exceeded or are expected to exceed the contract valueC. Interviewing procurement personnel about the presence of any red flagsD. Comparing the direct and indirect labor account totals from the prior year to the current year

Answer: B

Explanation:
Explanation/Reference: https://www.acfe.com/uploadedFiles/ACFE_Website/Content/review/cpf/07-Performance-Schemes.pdf

 

NEW QUESTION 42
Asset misappropriation schemes were the "middle children" of the study; they were more common than fraudulent statements and more costly than corruption.

A. TrueB. False

Answer: B

 

NEW QUESTION 43
Which of the following statements describes a best practice for preventing contract and procurement fraud?

A. Companies should not conduct background checks on vendors until after they are added to the vendor master file.B. Companies should permit the person who maintains the vendor master file to have the authority to approve invoices for payment.C. Companies should have vendor-monitoring procedures that are based on the red flags of the vendor schemes that pose the greatest risk.D. Companies should restrict the monitoring of their procurement activities to once a year to ensure comparability over time.

Answer: C

Explanation:
Explanation/Reference: https://www.fraudconference.com/31/post-cpf.aspx

 

NEW QUESTION 44
Which of the following is a recommended method for safeguarding an organization's proprietary information?

A. Changing locks and reprogramming door access codes every three to five yearsB. Classifying data into categories according to value and sensitivity levelsC. Requiring employees to take notes and keep drafts related to confidential projectsD. Mandating that all employees sign noncompetition agreements

Answer: B

 

NEW QUESTION 45
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