EMT Practice Test

1. Question Content...

---

Question1: How many accounts are affected in fraudulent accounting entries and therefore same number of categories on the financial statement?

Question2: ______________ is required not only for theft, but for procedures to detect errors, avoid waste and insure a proper amount of inventory is maintained.

Question3: Which of the following is MOST ACCURATE concerning common methods that identity thieves use to steal information?

Question4: A tangible asset is one which is:

Question5: The heart of book keeping system is the ___________.

Question6: The more power a person has over the bidding process, the more likely the person can influence the selection of a supplier.

Question7: Organizations that had external audits actually had higher median losses and longer lasting fraud schemes than those organizations that were not audited.

Question8: 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:

Question9: Which of the following is a red flag that might indicate that someone is attempting to commit insurance fraud?

Question10: Theft of incoming checks usually occurs when ________ is (are) in charge of opening the mail and recording the receipt of payments.

Question11: The most common method of detection in corruption cases is:

Question12: The difference between assets and liabilities is called:

Question13: __________ inventory and other assets is relatively common way for fraudsters to remove assets from the books before or after they are stolen.

Question14: People commit financial statement fraud to:

Question15: The principal way to detect omitted credits from books of account is through:

Question16: Which of the following methods would NOT be helpful in detecting a skimming scheme?

Question17: The amount of cash on hand in a register may be compared to the amount showing in the register tape in order to detect _______.

Question18: Which of the following is NOT the example of bribery prevention policies?

Question19: Which of the following statements about competitive intelligence is CORRECT?

Question20: Which of the following is a reason why prepaid debit and gift card fraud schemes are appealing to fraudsters?

Question21: Antonia, a Certified Fraud Examiner (CFE), discovers that a loan applicant misrepresented their creditworthiness and income to qualify for a mortgage on a new house. Which type of loan fraud BEST describes the scheme that Antonia uncovered?

Question22: In Cressey's fraud triangle, its three of the legs are Opportunity, Pressure and

Question23: Which of the following scenarios is an example of an economic extortion scheme?

Question24: Which of the following controls BEST describes the safeguards an organization implements to provide protection for computing resources by increasing security policies and awareness, conducting security audits and tests, and properly classifying data?

Question25: Which of the following is NOT a distinguishing characteristic of a Ponzi scheme?

Question26: ___________ is to allow the owner, investors, creditors and others with an interest to know the appropriate book worth of the business at a particular date.

Question27: Financial statement fraud is committed by:

Question28: In what type of fraud scheme does an employee steal cash after it has appeared on the company's books?

Question29: Which of the following is NOT a red flag of register disbursement schemes?

Question30: When expenses used to produce income- all of them- should be matched in a consistent manner against that income, this is referred to:

Question31: Which of the following would NOT be considered a conflict of interest?

Question32: Which of the following is NOT a medium that commonly causes an organization's proprietary information to be compromised?

Question33: Which of the following is not the skimming scheme?

Question34: Which of the following search is used for unusually high incidence of returns and allowances scheme?

Question35: ____________ corrupt employees can cause inventory to be fraudulently delivered to themselves or accomplices.

Question36: Which of the following scenarios BEST describes an electronic funds transfer (EFT) fraud scheme?

Question37: 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.

Question38: According to a survey, in principal perpetrator, males in a majority of cases, accounting for ___ percent of frauds versus ___ percent in which a female was the primary culprit.

Question39: To prevent expense reimbursement fraud, it is recommended that companies require employees to submit receipts electronically.

Question40: A running count that records how much inventory should be on hand is referred to:

Question41: John is a salesperson whose job requires him to entertain potential clients frequently. When John and another salesperson from a different company take a potential client to dinner, the other salesperson pays for the meal.
John creates his own receipt for the meal and submits the expense for reimbursement from his company.
John's scheme can BEST be characterized as:

Question42: Which of the following is a red flag of a Ponzi scheme?

Question43: Which of the following is TRUE regarding ghost employee schemes?

Question44: ___________ and __________ are used to increase (or decrease) the equity account.

Question45: ________, one of the Fraud synonyms implies that deceiving so thoroughly as to obscure the truth:

Question46: Black, an accounts receivable clerk, stole Customer A's monthly payment instead of posting it to A's account.
When Customer B's payment arrives a few days later, Black applies the payment to Customer A's account.
When Customer C's payment arrives a few days after that, Black applies it to Customer B's account. Black's method of crediting one account with money taken from another account is known as:

Question47: Larceny by Fraud or deception means that:

Question48: A fraudster creates a fictitious identity by combining a person's real government identification number with a fabricated name and birthdate. This scheme can BEST be described as:

Question49: Which of the following statements describes a best practice for preventing contract and procurement fraud?

Question50: Accounting records are designed to be kept on subjective rather than objective evidence.

Question51: Which of the following ratios can be used to determine the efficiency with which a company uses its assets?

Question52: Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

Question53: Which of the following is a common way that dishonest contractors collude to evade the competitive bidding process?

Question54: All the following are basic methods used to prove corrupt payments in corruption schemes EXCEPT:

Question55: Which of the following statements regarding new account fraud is MOST ACCURATE?

Question56: Which of the following situations describes a red flag that might be indicative of loan fraud?

Question57: Collusion or bid-rigging between bidders is called

Question58: Not having any accounts receivable that are overdue is a common red flag of fictitious revenue schemes.

Question59: 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?

Question60: Which of the following statements about skimming is CORRECT?

Question61: Which of the following is a method of identity theft prevention that is recommended for businesses?

Question62: Which of the following is a method that a fraudster might use to conceal inventory shrinkage?

Question63: According to Hollinger and Clark for Policy development, management must pay attention to:

Question64: In ____________ scheme, a supplier pays an employee of the purchasing company to write specifications that will require amendments at a later date.

Question65: Which of the following scenarios describes a card skimming or shimming scheme?

Question66: Which of the following statements is TRUE regarding the prevention of inventory theft?

Question67: Every bribe is a two-sided transaction, in which where a vendor bribes a purchaser, there is someone on the vendor's side of the transaction who is not making an illicit payment.

Question68: Pilar had to purchase computer equipment for ABC Corporation, her employer. Pilar created a shell company, used the shell company to purchase used computer equipment, and then resold that equipment to ABC Corporation at an increased price. This is an example of a:

Question69: Which of the following is FALSE regarding electronic payment tampering?

Question70: Which of the following is NOT the phase of the bidding process?

Question71: 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:

Question72: Which of the following statements is MOST ACCURATE regarding financial reporting practices and accounting frameworks, such as U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS)?

Question73: Which of the following is NOT a measure that is commonly taken by fraudsters during account takeover schemes?

Question74: Financial statement fraud is BEST described as the intentional or accidental misstatement of amounts in the financial statements.

Question75: Warner is part of management at ABC Corporation. He has been asked to implement measures to help prevent fraudulent billing schemes. Which of the following measures would likely be MOST EFFECTIVE?

Question76: Asset misappropriations have an effect on the liabilities and do also have an indirect effect on the equity account.

Question77: __________ means that traditional bribery statutes proscribe only payments made to influence the decisions of government agents or employees.

Question78: Persuasive evidence of an arrangement does not exist when:

Question79: Which of the following is the MOST ACCURATE statement about the phases of procurements involving open and free competition among contractors?

Question80: Georgina works for TAK Intelligence, a competitive intelligence firm. She is tasked with gathering intelligence about ERO Corp., a competitor of one of TAK's clients. To gather the intelligence, Georgina poses as a customer and contacts ERO. She then elicits sensitive information from an ERO employee.
Georgina's approach is an example of:

Question81: What can make it easy for an employee to skim sales or receivables?

Question82: When an incorrect total is carried from the journal to the ledger or from ledger to the financial statements, this method is called:

Question83: A ____________ can be very costly for an organization to undertake, both in terms of money and time spent.

Question84: Which of the following is NOT the method for stealing inventory and other assets?

Question85: Which of the following is a recommended method for safeguarding an organization's proprietary information?

Question86: Once the expense account is closed, it becomes a historical item and probably will never be reviewed again.

Question87: Which of the following is a TRUE statement regarding check fraud?

Question88: Which of the following would be helpful in detecting a cash larceny scheme?

Question89: According to the recommended methodology for responding to cybersecurity incidents, which of the following activities should occur during the detection and analysis step?

Question90: The excess credits (or debits) on the income statement are used to decrease (or increase) the equity account.

Question91: Placing any restriction in the solicitation documents that tend to restrict competition is called prebid solicitation.

Question92: An analytical review reveals that XYZ Company's cost of goods sold has increased by 75% in the last year.
However, its sales revenues only increased by 25% during the same period. This situation MOST LIKELY indicates which of the following?

Question93: 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:

Question94: Which of the following is an example of a corruption scheme?

Question95: ___________ allows the fraud examiner to inspect key attributes on a smaller portion (or sample) of those documents.

Question96: The fraudsters' interest lies with an employer other than a company.