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NEW QUESTION 39
Accounting records are designed to be kept on subjective rather than objective evidence.

A. TrueB. False

Answer: B

 

NEW QUESTION 40
A scheme is classified as a Conflict of interest:

A. when an employee must have some kind of ownership or employment interest in the vendor submitting the invoice.B. when a dealer must have some kind of dealership interest in the vendor submitting the stock.C. when a salesman must have some kind of ownership or employment interest in the vendor submitting the sales.D. when a purchaser must have some kind of ownership or employment interest in the vendor submitting the purchase.

Answer: A

 

NEW QUESTION 41
Multiple cashiers operate from a single cash drawer without separate access codes is a red flag for:

A. Disbursement schemeB. Register schemeC. Fraudulent schemeD. Force inventory scheme

Answer: B

 

NEW QUESTION 42
Which of the following statements about skimming is INCORRECT?

A. Skimming schemes are considered on-book frauds because they leave an audit trail.B. Skimming schemes can involve the theft of either cash sales or accounts receivable payments.C. Skimming schemes involve stolen customer payments that have not yet been recorded.D. Skimming schemes are generally more difficult to detect than cash larceny schemes.

Answer: A

Explanation:
Explanation/Reference: https://www.acfe.com/uploadedFiles/Shared_Content/Products/Self-Study_CPE/Intro%20to%20Fraud-Chapter%20Excerpt.pdf

 

NEW QUESTION 43
Blue sold $1,000 worth of merchandise and collected the payment from her customer in currency, but she only recorded the sale of $800 worth of merchandise. Blue turned $800 over to her employer and kept the remaining
$200. Blue's scheme is BEST classified as:

A. A false billing schemeB. An unrecorded sales (skimming) schemeC. A cash larceny schemeD. An understated sales (skimming) scheme

Answer: D

Explanation:
Explanation/Reference: https://yellowbook-cpe.com/misappropriation-of-cash-larceny-skimming.html

 

NEW QUESTION 44
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