Discuss ACFE CFE-Fraud-Schemes-and-Financial-Crimes Exam Topic 2 Question 3

How many accounts are affected in fraudulent accounting entries and therefore the same number of categories on the financial statement?

AOne

BAt least two

CMore than two

DNone of above

Suggested Answer: B

Rationale for Correct Answer:

By double-entry accounting rules, every accounting entry affects at least two accounts (debit and credit). Fraudulent entries must also follow this rule, meaning manipulation will show up in at least two categories on the financial statements.

Analysis of Incorrect Options:

A . One -- Impossible in double-entry accounting.

C . More than two -- Possible, but not always; the minimum is two.

D . None of above -- Incorrect since ''at least two'' is correct.

Key Concept:

Double-entry accounting ensures at least two accounts are affected in every transaction, including fraudulent ones.

ACFE Fraud Examiners Manual (2020 International Edition), Accounting Concepts --- Double-entry Accounting and Fraudulent Entries.

Get Premium CFE-Fraud-Schemes-and-Financial-Crimes Questions as Interactive Web-Based Practice Test or PDF Real Exam Format Detailed Explanations Instant Access Get Your Practice Test

21 comments · newest first

Lore 13 days ago

But that’s rare. B is more realistic for most frauds.

Mirta 18 days ago

I lean towards A. Sometimes just one account can be manipulated.

Lettie 24 days ago

True, but usually at least two is a safe bet.

Loreta 29 days ago

I feel like it could be C. More than two in complex cases.

Keshia 1 month ago

Agreed, B makes sense. Debits and credits, right?

Sherron 1 month ago

I think it's B. At least two accounts are usually affected.

Maryrose 1 month ago

But that’s rare. B is more realistic for most frauds.

Glendora 2 months ago

I lean towards A. Sometimes just one account can be manipulated.

Ashton 2 months ago

True, but usually at least two is a safe bet.

Vincent 2 months ago

I feel like it could be C. More than two in complex cases.

Heike 2 months ago

Agreed, B makes sense. Debits and credits, right?

Domitila 2 months ago

I think it's B. At least two accounts are usually affected.

Jesusita 3 months ago

I don't know, I feel like it could be none of the above too.

Latosha 3 months ago

Fraud usually impacts multiple categories, so I'm leaning towards C.

Carma 3 months ago

Wait, are you saying it can be just one account? That seems off.

Jeniffer 3 months ago

I think it could be more than two, honestly.

Jamal 3 months ago

Definitely at least two accounts involved.

Alecia 3 months ago

I’m pretty certain that at least two accounts are involved in fraudulent entries, so I would go with B.

Scarlet 4 months ago

I'm a bit confused. Could it be possible for more than two accounts to be affected? I guess it depends on the type of fraud.

Asuncion 4 months ago

This question feels familiar; I think we practiced one similar to this in class. I lean towards option B.

Chara 4 months ago

I think I remember that fraudulent entries usually involve at least two accounts, but I'm not entirely sure.

ACFE CFE-Fraud-Schemes-and-Financial-Crimes Exam - Topic 2 Question 3 Discussion