Certified Anti-Fraud Specialist
Examination Questions And Correct
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Rationales 2026 Q&A | Instant Download
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1. The three elements of the Fraud Triangle are:
A) Opportunity, need, greed
B) Pressure, opportunity, rationalization
C) Motive, means, intent
D) Pressure, ability, justification
Answer: B) Pressure, opportunity, rationalization
,rational,: Developed by Donald Cressey, the Fraud Triangle explains that
individuals commit fraud when they have a perceived unshareable financial
pressure, an opportunity to commit the fraud, and a way to rationalize their actions.
2. Which of the following is an example of asset misappropriation?
A) Overstating revenues in financial statements
B) Accepting a kickback from a vendor
C) Stealing cash from the company's register
D) Manipulating stock options backdating
Answer: C) Stealing cash from the company's register
,rational,: Asset misappropriation involves theft of an organization's assets. Cash
,theft is a common scheme, while overstating revenues is financial statement fraud
and kickbacks are corruption.
3. According to the ACFE's Occupational Fraud 2024 Report, the most common
type of occupational fraud scheme is:
A) Financial statement fraud
B) Asset misappropriation
C) Corruption
D) Cyber fraud
Answer: B) Asset misappropriation
,rational,: Asset misappropriation schemes (cash theft, billing schemes, expense
reimbursement fraud) are the most common, though they typically cause the
lowest median loss. Financial statement fraud is the least common but most
costly.
4. Which of the following is a common red flag for a billing scheme?
A) Increased sales with no increase in inventory purchases
B) Vendor address matching an employee's address
C) Unusually low gross profit margins
D) Decreased accounts receivable turnover
Answer: B) Vendor address matching an employee's address
,rational,: A billing scheme often involves a shell company; a vendor address
matching an employee's home address is a classic indicator. Other red flags
include P.O. boxes, generic vendor names, and sequential invoices.
,5. The Sarbanes-Oxley Act of 2002 (SOX) requires:
A) All public companies to have a fraud hotline
B) CEOs and CFOs to certify the accuracy of financial statements
C) Rotation of external auditors every three years
D) All fraud to be reported to the SEC within 24 hours
Answer: B) CEOs and CFOs to certify the accuracy of financial statements
,rational,: Section 302 of SOX mandates that the CEO and CFO personally certify
the fairness and accuracy of financial reports. Section 404 requires management's
assessment of internal controls. An audit committee, not full auditor rotation every
3 years, is required (lead audit partner rotation is required).
6. In a skimming scheme, cash is stolen:
A) After it is recorded on the company's books
B) Before it is recorded on the company's books
C) Through fraudulent expense reports
D) Via check tampering
Answer: B) Before it is recorded on the company's books
,rational,: Skimming involves diverting cash receipts before they are recorded in the
accounting system, making it difficult to detect. Larceny is theft of cash after it has
been recorded.
7. The Foreign Corrupt Practices Act (FCPA) prohibits:
A) Bribery of domestic officials
, B) Bribery of foreign officials to obtain or retain business
C) All gifts to foreign officials
D) Political contributions in the U.S.
Answer: B) Bribery of foreign officials to obtain or retain business
,rational,: The FCPA's anti-bribery provisions prohibit paying or offering anything of
value to foreign government officials for the purpose of obtaining or retaining
business. It also requires accurate books and records.
8. When interviewing a suspect in a fraud investigation, what is the primary
goal of the interviewer?
A) Obtain a written confession immediately
B) Establish guilt through aggressive questioning
C) Gather information and assess credibility
D) Convince the suspect to resign
Answer: C) Gather information and assess credibility
,rational,: The interview's objective is to collect facts, clarify inconsistencies, and
evaluate the subject's truthfulness. Confessions may be obtained, but the primary
goal is information gathering and assessment.
9. A "pass-through" scheme in billing fraud refers to:
A) A vendor paying kickbacks directly to an employee
B) An employee creating a shell company that purchases goods and resells them to
the employer at inflated prices
C) An employee approving fictitious invoices
D) An employee altering the payee on a check
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant Download
1. The three elements of the Fraud Triangle are:
A) Opportunity, need, greed
B) Pressure, opportunity, rationalization
C) Motive, means, intent
D) Pressure, ability, justification
Answer: B) Pressure, opportunity, rationalization
,rational,: Developed by Donald Cressey, the Fraud Triangle explains that
individuals commit fraud when they have a perceived unshareable financial
pressure, an opportunity to commit the fraud, and a way to rationalize their actions.
2. Which of the following is an example of asset misappropriation?
A) Overstating revenues in financial statements
B) Accepting a kickback from a vendor
C) Stealing cash from the company's register
D) Manipulating stock options backdating
Answer: C) Stealing cash from the company's register
,rational,: Asset misappropriation involves theft of an organization's assets. Cash
,theft is a common scheme, while overstating revenues is financial statement fraud
and kickbacks are corruption.
3. According to the ACFE's Occupational Fraud 2024 Report, the most common
type of occupational fraud scheme is:
A) Financial statement fraud
B) Asset misappropriation
C) Corruption
D) Cyber fraud
Answer: B) Asset misappropriation
,rational,: Asset misappropriation schemes (cash theft, billing schemes, expense
reimbursement fraud) are the most common, though they typically cause the
lowest median loss. Financial statement fraud is the least common but most
costly.
4. Which of the following is a common red flag for a billing scheme?
A) Increased sales with no increase in inventory purchases
B) Vendor address matching an employee's address
C) Unusually low gross profit margins
D) Decreased accounts receivable turnover
Answer: B) Vendor address matching an employee's address
,rational,: A billing scheme often involves a shell company; a vendor address
matching an employee's home address is a classic indicator. Other red flags
include P.O. boxes, generic vendor names, and sequential invoices.
,5. The Sarbanes-Oxley Act of 2002 (SOX) requires:
A) All public companies to have a fraud hotline
B) CEOs and CFOs to certify the accuracy of financial statements
C) Rotation of external auditors every three years
D) All fraud to be reported to the SEC within 24 hours
Answer: B) CEOs and CFOs to certify the accuracy of financial statements
,rational,: Section 302 of SOX mandates that the CEO and CFO personally certify
the fairness and accuracy of financial reports. Section 404 requires management's
assessment of internal controls. An audit committee, not full auditor rotation every
3 years, is required (lead audit partner rotation is required).
6. In a skimming scheme, cash is stolen:
A) After it is recorded on the company's books
B) Before it is recorded on the company's books
C) Through fraudulent expense reports
D) Via check tampering
Answer: B) Before it is recorded on the company's books
,rational,: Skimming involves diverting cash receipts before they are recorded in the
accounting system, making it difficult to detect. Larceny is theft of cash after it has
been recorded.
7. The Foreign Corrupt Practices Act (FCPA) prohibits:
A) Bribery of domestic officials
, B) Bribery of foreign officials to obtain or retain business
C) All gifts to foreign officials
D) Political contributions in the U.S.
Answer: B) Bribery of foreign officials to obtain or retain business
,rational,: The FCPA's anti-bribery provisions prohibit paying or offering anything of
value to foreign government officials for the purpose of obtaining or retaining
business. It also requires accurate books and records.
8. When interviewing a suspect in a fraud investigation, what is the primary
goal of the interviewer?
A) Obtain a written confession immediately
B) Establish guilt through aggressive questioning
C) Gather information and assess credibility
D) Convince the suspect to resign
Answer: C) Gather information and assess credibility
,rational,: The interview's objective is to collect facts, clarify inconsistencies, and
evaluate the subject's truthfulness. Confessions may be obtained, but the primary
goal is information gathering and assessment.
9. A "pass-through" scheme in billing fraud refers to:
A) A vendor paying kickbacks directly to an employee
B) An employee creating a shell company that purchases goods and resells them to
the employer at inflated prices
C) An employee approving fictitious invoices
D) An employee altering the payee on a check
