FRAUD EXAMINATION EXAM STUDY SHEET
2026 BUNDLED QUESTIONS WITH CORRECT
ANSWERS
◉ A conflict of interest occurs when: Answer: An employee has an
economic or personal interest in a transaction that adversely affects
the company
◉ Which of the following groups listed is most likely to perpetrate
frauds against the organization? Answer: Employees
◉ Why is larceny easier to detect than skimming? Answer: Larceny
involves stealing cash after it has already been recorded in the
company's accounting system
◉ Claiming personal travel as a business expense, claiming a
personal lunch as a business lunch, altering a receipt to reflect a
higher amount than was actually paid, or submitting fictitious
receipts is an example of which of the following? Answer: An
expense reimbursement scheme
◉ The most common occupational frauds in small businesses
involve employees doing all of the following EXCEPT: Answer:
Altering financial statements
,◉ What is the term that describes allowing selected investors to
purchase mutual funds after 4:00pm, using that day's net asset value
(NAV), rather than the next day's NAV, as required under law?
Answer: Late trading
◉ Identify the unlawful trading schemes engaged in through mutual
funds. Answer: Market timing and late trading
◉ Which of the following is the most likely reason fraud within a
company is detected? Answer: Employees who have suspicions
about possible fraud report them
◉ Which of the following is more likely to help detect occupational
frauds? Answer: A tip
◉ Which of the payroll fraud schemes listed below tends to generate
the largest losses? Answer: Ghost employee
◉ The two main categories of conflict of interest schemes are:
Answer: Purchase schemes and sale schemes
◉ Which function of the victim company is usually involved in
kickback schemes? Answer: Purchasing
,◉ Thefts of inventory are divided into two groups. Identify them.
Answer: Larceny and misuse
◉ Which of the following is the least costly disbursement scheme?
Answer: Register disbursement scheme
◉ What is the point of difference between illegal gratuity and
bribery schemes? Answer: Illegal gratuities do not necessarily
involve an intent to influence a business decision but rather to
reward someone for making a favorable decision
◉ Which is the least common expense disbursement scheme?
Answer: Submitting the same expenses multiple times
◉ Bid-rigging is a type of which of the following? Answer: Bribery
◉ Employees, vendors, and customers of organizations have three
opportunities to steal assets. Which of the following is NOT one
among them? Answer: Paying off public officials or company
insiders for preferential treatment
◉ Identify the two basic bribery schemes. Answer: Kickbacks and
bid-rigging
, ◉ What is known as the net asset value (NAV)? Answer: The closing
price of the securities that comprise a particular fund's portfolio
plus the value of any uninvested cash that the fund manager
maintains for the fund
◉ An ice cream store cashier sells two-scoop ice cream cones to
customers and enters the sales as single-scoop sales, while keeping
the difference for himself. Which fraud is being committed here?
Answer: Skimming
◉ Commercial bribery is similar to the traditional definition of
bribery except that in commercial bribery: Answer: Something of
value is offered to influence a business decision
◉ What has been verified as the most significant impact for
companies who have antifraud controls in place? Answer: Victim
organizations have lower losses
◉ Identify the action that does NOT represent one of the four types
of corruption. Answer: Overbilling the company for travel and other
related business expenses, such as business lunches, hotel bills, and
air travel
2026 BUNDLED QUESTIONS WITH CORRECT
ANSWERS
◉ A conflict of interest occurs when: Answer: An employee has an
economic or personal interest in a transaction that adversely affects
the company
◉ Which of the following groups listed is most likely to perpetrate
frauds against the organization? Answer: Employees
◉ Why is larceny easier to detect than skimming? Answer: Larceny
involves stealing cash after it has already been recorded in the
company's accounting system
◉ Claiming personal travel as a business expense, claiming a
personal lunch as a business lunch, altering a receipt to reflect a
higher amount than was actually paid, or submitting fictitious
receipts is an example of which of the following? Answer: An
expense reimbursement scheme
◉ The most common occupational frauds in small businesses
involve employees doing all of the following EXCEPT: Answer:
Altering financial statements
,◉ What is the term that describes allowing selected investors to
purchase mutual funds after 4:00pm, using that day's net asset value
(NAV), rather than the next day's NAV, as required under law?
Answer: Late trading
◉ Identify the unlawful trading schemes engaged in through mutual
funds. Answer: Market timing and late trading
◉ Which of the following is the most likely reason fraud within a
company is detected? Answer: Employees who have suspicions
about possible fraud report them
◉ Which of the following is more likely to help detect occupational
frauds? Answer: A tip
◉ Which of the payroll fraud schemes listed below tends to generate
the largest losses? Answer: Ghost employee
◉ The two main categories of conflict of interest schemes are:
Answer: Purchase schemes and sale schemes
◉ Which function of the victim company is usually involved in
kickback schemes? Answer: Purchasing
,◉ Thefts of inventory are divided into two groups. Identify them.
Answer: Larceny and misuse
◉ Which of the following is the least costly disbursement scheme?
Answer: Register disbursement scheme
◉ What is the point of difference between illegal gratuity and
bribery schemes? Answer: Illegal gratuities do not necessarily
involve an intent to influence a business decision but rather to
reward someone for making a favorable decision
◉ Which is the least common expense disbursement scheme?
Answer: Submitting the same expenses multiple times
◉ Bid-rigging is a type of which of the following? Answer: Bribery
◉ Employees, vendors, and customers of organizations have three
opportunities to steal assets. Which of the following is NOT one
among them? Answer: Paying off public officials or company
insiders for preferential treatment
◉ Identify the two basic bribery schemes. Answer: Kickbacks and
bid-rigging
, ◉ What is known as the net asset value (NAV)? Answer: The closing
price of the securities that comprise a particular fund's portfolio
plus the value of any uninvested cash that the fund manager
maintains for the fund
◉ An ice cream store cashier sells two-scoop ice cream cones to
customers and enters the sales as single-scoop sales, while keeping
the difference for himself. Which fraud is being committed here?
Answer: Skimming
◉ Commercial bribery is similar to the traditional definition of
bribery except that in commercial bribery: Answer: Something of
value is offered to influence a business decision
◉ What has been verified as the most significant impact for
companies who have antifraud controls in place? Answer: Victim
organizations have lower losses
◉ Identify the action that does NOT represent one of the four types
of corruption. Answer: Overbilling the company for travel and other
related business expenses, such as business lunches, hotel bills, and
air travel
