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CFCI Study Guide Questions With Correct Answers.
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CFCI Study Guide Questions With Correct Answers.
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CFCI Study GuideQuestions With
Correct Answers
Fraud - (CORRECT ANSWER)-"Any illegal acts characterized by deceit, concealment, or
violation of trust. These acts are not dependent upon the perpetrated by individuals and
organizations to obtain money, property, or services; to avoid payment or loss of services;
or to secure personal or business ad-vantage."
Main types of fraud - (CORRECT ANSWER)-Internal Fraud and External Fraud
Internal Fraud - (CORRECT ANSWER)-which involves the employees of the company
against which the fraud is perpetrated
External Fraud - (CORRECT ANSWER)-deceptive conduct by non-employees that
deprives the organization of value, and/or is undertaken for financial gain.
,embezzlement - (CORRECT ANSWER)-theft or misappropriation of funds placed in one's
trust or belonging to one's employer.
financial fraud - (CORRECT ANSWER)-"cooking the books." This type of
fraud generally refers to falsely representing the financial condition of the company, so as
to inflate the value of stock, fraudulently boost executive bonuses, or otherwise mislead
shareholders, lenders, employees, investment analysts, or other users of the information.
Skimming (cash larceny) - (CORRECT ANSWER)-Accounts receivable fraud, this
involves simply stealing cash before it enters the organization's accounting system.
Billing Schemes - (CORRECT ANSWER)-Perpetrated by employees who cause their
employer to issue a payment to a false supplier by submitting invoices for fictitious goods
or services, inflated invoices, or invoices for personal purchases.
check tampering - (CORRECT ANSWER)-taking advantage of employee access to blank
company checks, using a password to
steal computer-generated checks, or producing counterfeit checks.
Employee reimbursement scheme - (CORRECT ANSWER)-making false claims for
reimbursement, or inflating or creating fictitious business expenses. (Travel /meal
reimbursement.
, corruption - (CORRECT ANSWER)-Bribery, illegal gratuities, and/or extortion.
bribery - (CORRECT ANSWER)-when something of value is offered or given to influence a
business decision
Illegal Gratuities - (CORRECT ANSWER)-when something of value is given to an employee
to reward a business decision.
Extortion - (CORRECT ANSWER)-when a person demands payment or seeks to influence a
business decision by threat of harm through loss of business or personal injury.
Kickback Schemes - (CORRECT ANSWER)-involving employees and vendors, often using
inflated billing or invoices for which the employee is paid a portion of the inflated or
fictitious invoice.
credit card fraud - (CORRECT ANSWER)-the creation, sale, or use of a counterfeit credit
card, or the use of a stolen credit or debit card.
C.N.P - (CORRECT ANSWER)-Card not present transactions
identity fraud - (CORRECT ANSWER)-involves the unauthorized use of another person's
personal data for illegal financial benefit. Involves abusing the stolen information to
transact personal business in the victim's name.
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