EMT Practice Test

1. Question Content...

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Question1: Which of the following is the criterion for bid solicitation?

Question2: 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:

Question3: Which of the following is NOT the reason why senior management will overstate business statements?

Question4: Not having any accounts receivable that are overdue is a common red flag of fictitious revenue schemes.

Question5: Which of the following is a recommended method for safeguarding an organization's proprietary information?

Question6: ________, one of the synonyms for fraud, implies deceiving so thoroughly as to obscure the truth.

Question7: One of the simplest ways to justify unacceptable conduct and avoid guilt feelings is to invent a good reason for ________.

Question8: Larceny by fraud or deception means that:

Question9: The _______________ cost method of pricing would carry an asset's value on the financial statements as what it would currently cost, considering inflation.

Question10: The excess credits (or debits) on the income statement are used to decrease (or increase) the equity account.

Question11: People commit financial statement fraud to:

Question12: Which of the following is an example of a corruption scheme?

Question13: Which of the following is one of the sections on the statement of cash flows?

Question14: 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?

Question15: Financial statement fraud is committed by:

Question16: The most common method of detection in corruption cases is:

Question17: Undisclosed payments made by vendors to employees of purchasing companies are referred to as:

Question18: How many accounts are affected in fraudulent accounting entries and therefore the same number of categories on the financial statement?

Question19: Which of the following is NOT an example of bribery prevention policies?

Question20: Which of the following is NOT a measure that is commonly taken by fraudsters during account takeover schemes?

Question21: A tangible asset is one which is:

Question22: In which approach do fraudsters produce whatever financial statements they wish, perhaps using just a typewriter or a personal computer?

Question23: According to Marshall, ______ are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.

Question24: Which of the following is NOT a medium that commonly causes an organization's proprietary information to be compromised?

Question25: Joe's automobile insurance policy expired in June. In August, Joe was involved in an automobile accident, and his vehicle was severely damaged. After the accident, Joe contacted his insurance company and reinstated the policy. In September, Joe then submitted a claim with a September accident date for the damages that occurred to his vehicle in August. Joe has engaged in which of the following insurance schemes?

Question26: Which of the following can constitute a bribe, even if the illicit payment is never actually made?

Question27: Which of the following factors is NOT included in most financial statement schemes?

Question28: The scheme in which the same vendor is receiving favorable treatment can be found in purchases by vendor searches.

Question29: In ____________ scheme, a supplier pays an employee of the purchasing company to write specifications that will require amendments at a later date.

Question30: Which of the following is an example of a cash larceny scheme?

Question31: What can make it easy for an employee to skim sales or receivables?

Question32: Several people who work in real estate collude to obtain a loan for the construction of a residential building on a property that does not exist. The co-conspirators divide the proceeds among themselves and leave the lender with no collateral to seize when loan payments are not made. Which of the following BEST describes this scheme?

Question33: Which of the following is a method that a fraudster might use to conceal inventory shrinkage?

Question34: To detect fraud committed by a health care provider, a fraud examiner should look for which of the following red flags?

Question35: Which of the following is NOT a justifiable reason to depart from generally accepted accounting principles (GAAP)?

Question36: Which of the following statements is TRUE regarding income statements?

Question37: The difference between assets and liabilities is called:

Question38: To prevent expense reimbursement fraud, it is recommended that companies require employees to submit receipts electronically.

Question39: Fraudsters use the accounting system as a tool to generate the results they want in ___________ approach:

Question40: Larceny is the scheme in which an employee simply takes inventory from the company premises without attempting to conceal it in the books and records.

Question41: The principal way to detect omitted credits from books of account is through:

Question42: A journal in which all sales made on credit or cash are listed is:

Question43: Which of the following actions would balance the accounting equation to conceal the misappropriation of cash?

Question44: Baker, an employee of ABC Corporation, was the only employee who had control of the purchasing function for his department. Baker authorized the purchase of supplies that ABC did not need and used these supplies to make improvements to his house. This is an example of what kind of fraud?

Question45: Which of the following are the classifications for Corruption?

Question46: Mario performs surgery on a patient to replace a bone. The surgery should be billed using one code, but Mario bills the surgery using three codes (one for the entire surgery, one for the removal of the bone, and another for the insertion of the artificial bone), which increases the cost. Which of the following BEST describes Mario's scheme?

Question47: According to the Fraud Tree, cash has three following schemes:

Question48: 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?

Question49: A scheme is classified as a Conflict of Interest:

Question50: Which of the following offender types are people who take the money and run away?

Question51: Which of the following are used in a short-term skimming scheme?

Question52: Which of the following is MOST ACCURATE concerning common methods that identity thieves use to steal information?

Question53: George, a 71-year-old man, receives a fraudulent message on his computer stating that his computer has been infected by a virus. When George calls the phone number listed on the message, he speaks with a fraudster who charges him for computer repair services that are unnecessary. George has MOST LIKELY been victimized by which of the following schemes?

Question54: Entering a sales total lower than the amount actually paid by the customer is called:

Question55: Which of the following ratios can be used to determine the efficiency with which a company uses its assets?

Question56: Which of the following is a method that might be used to fraudulently overstate the inventory balance?

Question57: Which of the following is a method of identity theft prevention that is recommended for businesses?

Question58: Placing any restriction in the solicitation documents that tend to restrict competition is called prebid solicitation.

Question59: Which of the following statements is MOST ACCURATE regarding the methods used for making corrupt payments in corruption schemes?

Question60: Which of the following statements regarding financial statement disclosures is TRUE?

Question61: 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.

Question62: In Cressey's fraud triangle, its three legs are Opportunity, Pressure, and:

Question63: Which of the following is NOT a phase of the bidding process?

Question64: Delivery has not occurred or services have not been rendered when:

Question65: ________ decrease assets and expenses and/or increase liabilities and/or equity.

Question66: A typical issue involving materiality and fraud would be:

Question67: The most basic skimming scheme occurs when:

Question68: Which of the following is a common way that dishonest contractors collude to evade the competitive bidding process?

Question69: Once the expense account is closed, it becomes a historical item and probably will never be reviewed again.

Question70: Which of the following is NOT a common way that a procuring employee might engage in a bid manipulation scheme?

Question71: In which phase of the competitive bidding process do fraudsters attempt to influence the selection of a contractor by restricting the pool of competitors from whom bids are sought?

Question72: In the fraud scale, pressure, opportunity, and integrity variables all result in a list of ___ possible red flags or indicators of occupational fraud and abuse.

Question73: Which of the following is a condition that facilitates insider cyberfraud?

Question74: __________ means that traditional bribery statutes proscribe only payments made to influence the decisions of government agents or employees.

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

Question76: __________ may be defined as the offering, giving, receiving, or soliciting anything of value to influence an official act.

Question77: Reconciling the sales records to the cash receipts is an effective way to detect a sales skimming scheme.

Question78: _____________ involves purposeful misreporting of financial information about the organization that is intended to mislead those who read it.

Question79: Hannah is a manager at a financial institution. To safeguard the bank and its customers from electronic funds transfer (EFT) fraud, Hannah is implementing several preventive measures. Which of the following is NOT a measure Hannah should take to prevent EFT fraud?

Question80: By what accountant means that the financial figures presented by the company are at least as much as reflected in the statements, if not more.

Question81: Any expenses that are incurred but not paid by the end of the year are counted in our records of profit and loss, and are called:

Question82: A client contacts Emma, a Certified Fraud Examiner (CFE), and explains that they prepaid a commission to a broker for help with obtaining a loan. However, after sending the payment for services, the client did not receive a response from the broker and is unable to contact them. This type of fraud is known as a(n):

Question83: Which of the following is TRUE regarding accrual-basis accounting?

Question84: Which of the following is NOT the reason to bribe employees of the purchaser?

Question85: According to the recommended methodology for responding to cybersecurity incidents, which of the following activities should occur during the detection and analysis step?

Question86: __________ inventory and other assets is a relatively common way for fraudsters to remove assets from the books before or after they are stolen.

Question87: ____________ is a process by which a bookkeeper records all transactions and can adjust the books.

Question88: Which of the following methods is NOT used to detect conflicts of interest?

Question89: Which of the following is NOT one of the information security goals that should be achieved to secure an e- commerce system for users and account holders?

Question90: Which of the following methods would NOT be helpful in detecting a skimming scheme?

Question91: Which of the following scenarios describes a card skimming or shimming scheme?

Question92: Organizations that had external audits actually had higher median losses and longer-lasting fraud schemes than those organizations that were not audited.

Question93: According to accounting principles, ________ and ________ should be recorded or matched in the same accounting period; failing to do so violates the matching principle of GAAP.

Question94: 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:

Question95: In what type of fraud scheme does an employee steal cash after it has appeared on the company's books?

Question96: Another way to eliminate competition in the solicitation phase of the selection process is to: