EMT Practice Test

1. Question Content...

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Question1: A __________ is a day-by-day, or chronological, record of transactions

Question2: A technique by which checks are numbered using a new technique that is revealed by a colored highlighter pen or by a bright light held behind the check is called:

Question3: To keep the accounting equation in balance, which of the following actions will need to be taken if someone wants to conceal the fraudulent removal of a liability from the books?

Question4: Which of the following statements is FALSE with regard to counterfeit credit and debit cards?

Question5: Verify supporting documentation on outstanding checks written for a material amount is a test used to conduct for:

Question6: _____________ involves purposeful misreporting of financial information about the organization that is intended to mislead those who read it.

Question7: A person is said to be in ________ act, when the business which he transacts, or the money or property which he handles, is not for his own benefit, but for another person:

Question8: A fabricated name and the post office box that an employee uses to collect disbursements from false billings is called:

Question9: __________ is required if and when officers, executives or other persons in trusted positions become subjects of a criminal indictment.

Question10: One reason employees might be hesitant to use PO boxes in shell company schemes is that some businesses are specially vary of sending checks to vendors that have street addresses only.

Question11: Which of the following is NOT a measure commonly taken by fraudsters during account takeover schemes?

Question12: Which of the following is NOT the type of billing scheme?

Question13: Skimming is:

Question14: All of the following are basic methods used to prove corrupt payments in corruption schemes EXCEPT:

Question15: After a government health care program pays for Marco's appendectomy, he files a claim for reimbursement under his private insurance policy for the same procedure. Which type of patient-perpetrated health care fraud scheme is Marco MOST LIKELY committing?

Question16: Bid-rigging scheme occurs when:

Question17: Theft of incoming checks usually occurs when ________ is (are) in charge of opening the mail and recording the receipt of payments.

Question18: ____________ corrupt employees can cause inventory to be fraudulently delivered to themselves or accomplices.

Question19: Asset misappropriation schemes were the "middle children" of the study; they were more common than fraudulent statements and more costly than corruption.

Question20: In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?

Question21: __________ inventory and other assets is relatively common way for fraudsters to remove assets from the books before or after they are stolen.

Question22: Which of the following scenarios is an example of an electronic extortion scheme?

Question23: In ___________ scheme, an employee creates false vouchers or submits false invoices to the employer.

Question24: ____________ is a process by which a bookkeeper records all transactions and can adjust the books.

Question25: _________ normally are carried on an organization's books as expenses because they tend to be consumed by the organization within a year of purchase.

Question26: A tangible asset is one which is:

Question27: The most basic skimming scheme occurs when:

Question28: A financial manager who pressures investors to take regular payouts rather than to reinvest their profits is a red flag of a Ponzi scheme.

Question29: Which of the following is NOT the phase of the bidding process?

Question30: Depreciation is especially applicable when companies try to overvalue their assets and net worth; the lower their depreciation expense, the higher the company's profits.

Question31: Hamed works as an intelligence professional for Iriam intelligence, a competitive intelligence firm. He is tasked with gathering intelligence about Dripcore Inc., the major competitor of Iriam's biggest client. To gather the intelligence, Hamed poses as an applicant for a high-level position with Dripcore and obtains a job interview through which he elicits sensitive information from Dripcore's employee. Hamed's approach is an example of:

Question32: Bank cut-off statements should be requested for 10-15 days after the closing date of the balance sheet.

Question33: Which of the following statements is TRUE with regard to the income statement?

Question34: ____________ is a summary of the account balances carried in a ledger.

Question35: The price of an asset on which the asset is selling at on the open market in a transaction between a willing buyer and a wiling seller is called:

Question36: A running count that records how much inventory should be on hand is referred to:

Question37: A typical issue involving material and fraud would be:

Question38: Which of the following would NOT be considered a conflict of interest?

Question39: ______________ is required not only for theft, but for procedures to detect errors, avoid waste and insure a proper amount of inventory is maintained.

Question40: Revenue is recognized when it is:

Question41: The fraudsters' interest lies with an employer other than a company.

Question42: Bayan finds a residential property with an owner who lives far away. She forges the owner's signature on property transfer documents that purport to give Bayan full ownership of the property. Bayan then takes the falsified documents to the bank and obtains a loan using the property as collateral. Which of the following BEST describes this scheme?

Question43: Which of the following is not the skimming scheme?

Question44: When an employee processes a fictitious refund of goods, the victim company's inventory is overstated.

Question45: Persuasive evidence of an arrangement does not exist when:

Question46: Which of the following is an insurance fraud detection tool that uses computer-generated reports to compare payments going to the same location and identify funds fraudulently sent to brokers?

Question47: The principal way to detect omitted credits from books of account is through:

Question48: Which sale occurs when the accomplice of the employee-fraudster "buys" merchandise, but the employee does not ring up the sale, and the accomplice takes the merchandise without making any payment?

Question49: _________ is defined as a person who works for the victim organization and who is primary culprit

Question50: Assets that are long-lived and that differ from property, plant and equipment hat has been purchased outright or acquired under a capital lease are:

Question51: Undisclosed payments made by vendors to employees of purchasing companies are referred to as:

Question52: Martin worked in the warehouse of a large electronics distributor. When a shipment of five hundred cameras arrived, Martin stole one hundred of the units. He sent a receiving report to accounts payable indicating that all five hundred cameras arrived. However, he altered the copy used for the inventory records to indicate that only four hundred of the units were received so that the available inventory would match the perpetual inventory records. What type of scheme did Martin commit?

Question53: Because sales skimming is an off-book fraud scheme, it is unlikely to be detected by reconciling the sales records to the cash receipts.

Question54: In physical tampering prevention technique, hidden images can be seen only when the check is held at an angle through:

Question55: The scheme in which the same vendor is receiving favorable treatment van be found in purchases by vendor searches.

Question56: Which of the following is the MOST ACCURATE statement about the phases of procurements involving open and free competition?

Question57: Which of the following is an example of a technical security control that organizations can use to secure computer systems and communication networks?

Question58: In which phase of competitive bidding process, fraudsters attempt to influence the selection of a contractor by restricting the pool of competitors from whom bids are sought?

Question59: Which of the following must be present for a fraud to exist?

Question60: What is sometimes used to overcome well-designed internal controls of a victim company?

Question61: Which of the following scenarios describes an electronic funds transfer (EFT) fraud scheme?

Question62: Which of the following is one of the categories on the statement of cash flows?

Question63: To help prevent fraudulent billing schemes, it is recommended that companies combine the purchasing and payment functions.

Question64: Which of the following is NOT a method of identity theft prevention recommended for businesses?

Question65: When a victim company purchases unnecessary goods or services from a supplier at the direction of the corrupt employee, this results in:

Question66: The _______________ cost method of pricing would carry an asset's value on the financial statements as what it would currently cost, considering inflation.

Question67: The essential elements of a ________ are an actual or constructive taking away of the goods or property of another with the without the consent and against the will of the owner and with a felonious intent.

Question68: Which of the following statements regarding new account fraud is MOST ACCURATE?

Question69: Which of the following fraud schemes is MOST LIKELY to target a neighborhood of immigrants?

Question70: Neil, a Certified Fraud Examiner (CFE), discovers that a borrower used the same property as a security, or guarantee, to obtain multiple loans from different financial institutions before they were recorded on his credit report. Which type of loan fraud BEST describes the scheme Neil uncovered?

Question71: Which of the following is NOT a way that dishonest contractors collude to circumvent the competitive bidding process?

Question72: Schemes in which an employee physically misappropriates cash that has already appeared on the victim organization's books are known as:

Question73: Asset misappropriations have an effect on the liabilities and do also have an indirect effect on the equity account.

Question74: Which of the following actions could management take to make a company appear more profitable than it actually is?

Question75: Which of the following is FALSE concerning methods corporate spies generally use to steal information from other organizations?

Question76: Which of the following statements describes a best practice for preventing contract and procurement fraud?

Question77: Inventory shrinkage is the unaccounted-for reduction in the company's inventory that does not results from theft.

Question78: Physical tampering prevention is a check tampering technique that is used to secure bankassisted controls.

Question79: Which of the following is a common red flag of a bid tailoring scheme?

Question80: The person or persons who have access to __________ are often the targets of unethical vendors seeking an advantage in the process.

Question81: Which of the following factors is NOT included in most financial statement schemes?

Question82: The principle behind full disclosure is:

Question83: According to fraud tree, cash has three following schemes:

Question84: Which of the following is the MOST APPROPRIATE technique for detecting a nonconforming goods or services scheme?

Question85: One final means of concealing a register scheme, as with many kinds of fraud, is to destroy all records of the transaction.

Question86: Vertical analysis can BEST be described as:

Question87: According to Marshall, ______ are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.