ACFE CFE-Financial-Transactions-and-Fraud-Schemes Exam - Topic 5 Question 99 Discussion

Actual exam question for ACFE's CFE-Financial-Transactions-and-Fraud-Schemes exam

Question #: 99
Topic #: 5

[All CFE-Financial-Transactions-and-Fraud-Schemes Questions]

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:

AConflict of interest in sale

BTurnaround sale or flip

CUnauthorized sale

DWritten sale of unique assets

Show Suggested Answer

Suggested Answer: B

by Carlene at Sep 14, 2024, 06:09 PM

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Erick

5 months ago

I thought a turnaround sale was something different?

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Carri

6 months ago

Wait, is this even legal?

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Shaniqua

6 months ago

That's definitely a conflict of interest!

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Shayne

6 months ago

I've seen this happen before, it's shady for sure.

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Eloisa

6 months ago

I agree, option A makes the most sense here.

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Aron

6 months ago

I vaguely recall something about unique assets and written sales, but I don't think that's what this question is asking.

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Teri

7 months ago

I'm confused about the options. I feel like "unauthorized sale" could fit, but it doesn't sound quite right for this scenario.

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Beckie

7 months ago

I remember practicing a question about employees buying assets before the employer, and I think it was called a turnaround sale or something like that.

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Cecilia

7 months ago

I think this might be related to conflict of interest, but I'm not entirely sure if that's the right term for it.

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I think the best approach here is to focus on the core issue - employees using non-public information for personal gain. That seems to fit the description of a conflict of interest, so I'll go with option A.

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Veta

8 months ago

Wait, I'm confused. Is this about the employees buying the asset themselves or the employer selling it? I want to make sure I'm not missing some nuance here. Maybe I should review my notes on these types of corporate ethics cases.

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Jacob

8 months ago

Okay, I've got this. The key is that the employees are taking advantage of inside information about their employer's plans to purchase an asset. That sounds like a classic conflict of interest situation to me. I'll select option A.

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Solange

8 months ago

Hmm, I'm a bit unsure about this one. I need to make sure I understand the difference between the options like "conflict of interest" and "unauthorized sale." Let me re-read the question closely.

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Stephane

8 months ago

This seems like a straightforward question about conflicts of interest. I'll carefully read through the options and think about the key details in the question stem.

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Mireya

8 months ago

This one seems pretty straightforward. I think the answer is A - a request for normal operation to be restored.

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Mike

2 years ago

Conflict of interest? More like a conflict of 'I want that sweet, sweet profit!' Gotta love the corporate world sometimes.

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Shakira

2 years ago

C) Unauthorized sale

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Stacey

2 years ago

B) Turnaround sale or flip

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Meaghan

2 years ago

A) Conflict of interest in sale

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Jaclyn

2 years ago

Written sale of unique assets? That's a good one, but I doubt that's the right answer here. These employees are just trying to line their own pockets.

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