Fraud schemes, red flags, and detection and prevention techniques tested on the Certified Fraud Examiner (CFE) exam.
39 cards · basic cards · AI-written, checked twice. Edit anything.
- What are the three elements of the fraud triangle?
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Pressure (motivation), Opportunity (ability), and Rationalization (justification)- In the fraud triangle, what does 'pressure' represent?
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A financial or emotional need that motivates someone to commit fraud- In the fraud triangle, what does 'opportunity' represent?
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A weakness in controls that makes fraud possible- In the fraud triangle, what does 'rationalization' represent?
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The fraudster's ability to justify the dishonest act to themselves- Define asset misappropriation.
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The theft of an organization's assets such as cash, inventory, or property- Define corruption fraud.
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Illegal schemes involving bribery, extortion, or conflict of interest to gain personal advantage- Define financial statement fraud.
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Intentional misstatement or omission of amounts or disclosures in financial statements- What is check fraud?
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Forging or altering checks to steal funds from the organization- What is skimming?
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Removing cash from a register or business before it is recorded in the accounting system- What is cash larceny?
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The theft of cash after it has been recorded in the accounting system- What is a ghost employee fraud scheme?
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Adding fictitious employees to the payroll to receive salary or wage payments- What is timesheet padding?
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Recording more hours worked than actually worked to steal wages or salary- What is inventory fraud?
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Theft of inventory or falsification of inventory records to conceal theft- What is accounts receivable fraud?
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Writing off customer accounts as uncollectible to conceal theft of customer payments- What is expense reimbursement fraud?
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Submitting false or inflated expense reports to obtain unauthorized reimbursement
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