ACFE CFE-Fraud-Schemes-and-Financial-Crimes Exam Questions

Rationale for Correct Answer:

Skimming is defined as the theft of cash before it is recorded in the books. Because the stolen funds are never entered into the accounting system, this is often referred to as an ''off-book'' fraud. It is distinct from cash larceny, which occurs after cash has been recorded.

Analysis of Incorrect Options:

B . The addition of cash -- Incorrect; skimming involves removal, not addition.

C . Removal after entry -- This describes cash larceny, not skimming.

D . None of above -- Incorrect since option A is correct.

Key Concept:

Skimming schemes --- off-book cash theft.

ACFE Fraud Examiners Manual (2020 International Edition), Cash Receipts --- Skimming Schemes.

Rationale for Correct Answer:

Bribery prevention policies often include:

Reporting gifts (disclosure of items received from vendors),

Discounts (rules about vendor concessions),

Business meetings (clear rules on vendor-sponsored events).

Resource diversions is not a standard bribery prevention policy but a form of fraud.

Analysis of Incorrect Options:

A, B, C -- Legitimate examples of prevention policies.

D . Resource diversions -- Not a preventive measure.

Key Concept:

Anti-bribery policies --- clear rules on gifts, discounts, and vendor relationships.

ACFE Fraud Examiners Manual (2020 International Edition), Corruption --- Prevention of Bribery Schemes.

Tammy is most likely committing a structuring scheme. Structuring occurs when a person deliberately breaks transactions into smaller amounts to avoid mandatory reporting thresholds. Here, Tammy repeatedly deposits cash in amounts between $9,000 and $9,900, just below the $10,000 reporting requirement. That pattern strongly indicates an attempt to avoid currency transaction reporting. A reverse deposit scheme and remote deposit capture scheme do not describe the deliberate splitting of cash deposits to evade reporting. Integration is a later stage of money laundering in which illicit funds are reintroduced into the economy as apparently legitimate funds, but Tammy's activity is focused on avoiding detection during placement. The ACFE material identifies repeated deposits just under the reporting threshold as a classic red flag of smurfing or structuring.

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Security audits and tests, incident response plans, and separation of duties are best classified as administrative security controls because they involve policies, procedures, monitoring, governance, and assignment of responsibilities. Administrative controls are designed to manage human behavior and organizational processes that support cybersecurity. The ACFE material discusses computer security controls, including separation of duties, security audits and tests, and incident response planning, as part of a broader control environment for preventing and detecting cyberfraud. Logical access controls focus on system permissions and authentication. Physical access controls protect facilities and hardware. Technical controls are automated or technology-based safeguards. Since the listed items mainly involve procedures, oversight, and response planning, administrative security controls is the best answer.

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Rationale for Correct Answer: Social engineering involves manipulating or deceiving

Analysis of Incorrect Options:

A . IP spoofing -- Forging an IP address to disguise origin.

B . Electronic piggybacking -- Unauthorized use of someone else's access connection.

C . Packet sniffing -- Monitoring data traffic across a network.

Key Concept: Cyberfraud techniques -- social engineering.