WGU D551 OBJECTIVE ASSESSMENT AND PRE -
ASSESSMENT NEWEST 2026 TEST BANK| D551 FRAUD
AND FORENSIC ACCOUNTING OA & PA WITH
COMPLETE ACTUAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+ (BRAND NEW!!)
A 3rd party sues an accounting firm for false representation. Before the
trial begins, the 2 parties agree to argue their case in front of a neutral
3rd party & to accept the decision made by that party as the final
decision. Which type of negotiated remedy have the parties agreed
upon?
A. Pretrial conference
B. Binding arbitration
C. Binding mediation
D. Summary judgement – Correct Answer - Binding arbitration
A company reviews employee personal expenses incurred during
nonworking hours & compares them to work hours. Which fraud scheme
is management attempting to detect?
A. Mischaracterized expense reimbursements
B. Register disbursement schemes
C. Commission schemes
D. Payroll fraud – Correct Answer - Mischaracterized expense
reimbursements
pg. 1
,Lucas sells several feet of cedar wood planks to a customer for cash
before the lumber yard opens for the day. Lucas deposits the cash in his
personal account & does not record the sale in his employer's accounting
system. Which type of sales skimming scheme is Lucas performing?
A. After hour sales
B. Skimming by off-site employees
C. Understated sales
D. Cash register manipulation – Correct Answer - After hours sales
A company installed security cameras in its warehouses. What is the
company attempting to detect?
A. Cash register schemes
B. Larceny of noncash assets
C. Purchasing schemes
D. Fictictious sales – Correct Answer - Larceny of noncash assets
A company requires that signed checks not be returned to the preparer.
What is the company attempting to prevent?
A. Theft of outgoing company checks
B. Lapping
C. Unconcealed Larceny
D. collusion – Correct Answer - Theft of outgoing company
A company requires incoming revenues to be itemized on a deposit slip
to trace deposits to specific payments. Which fraud scheme is the
company attempting to prevent?
pg. 2
,A. Billing
B. Lapping
C. Skimming
D. Collusion – Correct Answer - Lapping
Which method of generating fraudulent financials involves producing
whatever financials are desired by using a personal computers & a
printer?
A. Removing the accounting system
B. Beating the accounting system
C. Playing the accounting system
D. Going outside the accounting system – Correct Answer - Going
outside the accounting system
A company purchased new machinery for $450,000. By the end of the
fiscal year, the net realizable value (NRV) was $380,000. Company
reported it at NRV instead of cost so that return on asset is as per the
industry average. Which accounting principle did the company violate to
commit this fraud?
A. Going Concern
B. Matching
C. Historical Cost
D. Accrual – Correct Answer - Historical Cost
A company received a contract to supply goods on April 1. However, as
very few sales were reported in the 1st qrtr., the management decided to
record this sale on March 31. This way, the company's performance
pg. 3
, would appear stronger in Q1. Which financial statement fraud scheme
did the management perform?
A. Improper asset valuation
B. Fictitious revenue
C. Timing difference
D. Concealed expenses – Correct Answer - Timing difference
A company requires employees to complete an annual financial
disclosure statement. Which fraud scheme is the company attempting to
prevent?
A. Conflicts of Interest
B. Economic Extortion
C. Illegal Gratuities
D. Bribery – Correct Answer - Conflicts of Interest
After receiving a report of data leakage at a data center, the security
officer reviewed the CCTV footage. The footage revealed that an
unauthorized individual closely followed an authorized employee
through badge-access doors w/o swiping a badge & gained entry to a
restricted area. Which type of fraud does this scenario exemplify?
A. Data diddling
B. Piggybacking
C. Simulation & modeling
D. Privilege escalation exploit – Correct Answer - Piggybacking
pg. 4
ASSESSMENT NEWEST 2026 TEST BANK| D551 FRAUD
AND FORENSIC ACCOUNTING OA & PA WITH
COMPLETE ACTUAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+ (BRAND NEW!!)
A 3rd party sues an accounting firm for false representation. Before the
trial begins, the 2 parties agree to argue their case in front of a neutral
3rd party & to accept the decision made by that party as the final
decision. Which type of negotiated remedy have the parties agreed
upon?
A. Pretrial conference
B. Binding arbitration
C. Binding mediation
D. Summary judgement – Correct Answer - Binding arbitration
A company reviews employee personal expenses incurred during
nonworking hours & compares them to work hours. Which fraud scheme
is management attempting to detect?
A. Mischaracterized expense reimbursements
B. Register disbursement schemes
C. Commission schemes
D. Payroll fraud – Correct Answer - Mischaracterized expense
reimbursements
pg. 1
,Lucas sells several feet of cedar wood planks to a customer for cash
before the lumber yard opens for the day. Lucas deposits the cash in his
personal account & does not record the sale in his employer's accounting
system. Which type of sales skimming scheme is Lucas performing?
A. After hour sales
B. Skimming by off-site employees
C. Understated sales
D. Cash register manipulation – Correct Answer - After hours sales
A company installed security cameras in its warehouses. What is the
company attempting to detect?
A. Cash register schemes
B. Larceny of noncash assets
C. Purchasing schemes
D. Fictictious sales – Correct Answer - Larceny of noncash assets
A company requires that signed checks not be returned to the preparer.
What is the company attempting to prevent?
A. Theft of outgoing company checks
B. Lapping
C. Unconcealed Larceny
D. collusion – Correct Answer - Theft of outgoing company
A company requires incoming revenues to be itemized on a deposit slip
to trace deposits to specific payments. Which fraud scheme is the
company attempting to prevent?
pg. 2
,A. Billing
B. Lapping
C. Skimming
D. Collusion – Correct Answer - Lapping
Which method of generating fraudulent financials involves producing
whatever financials are desired by using a personal computers & a
printer?
A. Removing the accounting system
B. Beating the accounting system
C. Playing the accounting system
D. Going outside the accounting system – Correct Answer - Going
outside the accounting system
A company purchased new machinery for $450,000. By the end of the
fiscal year, the net realizable value (NRV) was $380,000. Company
reported it at NRV instead of cost so that return on asset is as per the
industry average. Which accounting principle did the company violate to
commit this fraud?
A. Going Concern
B. Matching
C. Historical Cost
D. Accrual – Correct Answer - Historical Cost
A company received a contract to supply goods on April 1. However, as
very few sales were reported in the 1st qrtr., the management decided to
record this sale on March 31. This way, the company's performance
pg. 3
, would appear stronger in Q1. Which financial statement fraud scheme
did the management perform?
A. Improper asset valuation
B. Fictitious revenue
C. Timing difference
D. Concealed expenses – Correct Answer - Timing difference
A company requires employees to complete an annual financial
disclosure statement. Which fraud scheme is the company attempting to
prevent?
A. Conflicts of Interest
B. Economic Extortion
C. Illegal Gratuities
D. Bribery – Correct Answer - Conflicts of Interest
After receiving a report of data leakage at a data center, the security
officer reviewed the CCTV footage. The footage revealed that an
unauthorized individual closely followed an authorized employee
through badge-access doors w/o swiping a badge & gained entry to a
restricted area. Which type of fraud does this scenario exemplify?
A. Data diddling
B. Piggybacking
C. Simulation & modeling
D. Privilege escalation exploit – Correct Answer - Piggybacking
pg. 4
