SMQT 234- (Fraud & Abuse) EXAM 2026 LATEST
UPDATE QUESTIONS AND CORRECT VERIFIED
ANSWERS ALREADY GRADED A+
1 - 1 A company is a victim of a $414 million fraud. At that time its profit margin is 10%.
How much additional revenue should the company generate in order to recover the
effect on net income? - ANS-C. $4.14 billion
1 - 2 A company was the victim of several frauds that totaled approximately $10 million
in one year. With a profit margin of 10 percent, and assuming that the company's
product sold for $1,000 per unit, how many additional units must the company sell to
compensate for the fraud losses? - ANS-C. 100,000
1 - 3 Civil claims begin when one party files a complaint against another, usually for the
purpose of: - ANS-D. financial restitution.
1 - 4 Customer fraud includes all of the following EXCEPT: - ANS-C. Fraud
perpetrated through collusion between buyers and vendors.
1 - 5 Employee embezzlement can be direct or indirect. Indirect fraud occurs when: -
ANS-C. an employee receives a kickback from a vendor.
1 - 6 Fraud has a direct dollar for dollar impact on a company's - ANS-B. Net income.
1 - 7 Fraud in companies such as WorldCom, Enron, Waste Management, Sunbeam,
Rite-Aid, Phar-Mor, Parmalat, and ZZZZBest are examples of: - ANS-D. Management
fraud.
1 - 8 Generally applicants for CFE certification should have a minimum of a bachelor's
degree or equivalent from an institution of higher learning. Alternatively if applicants do
not have a bachelor's degree, they may substitute how many months of fraud-related
professional experience for each year of academic study. - ANS-A. 24
1 - 9 Given below are the profit margins and fraud related losses of four economies.
Which economy will have to generate the maximum dollar amount of additional
revenues to recover the loss to aggregate income? Economy A 10% $225 million -
Economy B 10% $150 million - Economy C 5% $100 million - Economy D 2% $ 50
million - ANS-B. Economy D
1 - 10 Government agencies such as the FBI, FDIC, IRS, or various health agencies
publish fraud statistics from time to time. Which of the following observations concerning
, such statistics is true? - ANS-C. They provide only those statistics related to their
jurisdiction.
1 - 11 How is the confidence element established in a Ponzi scheme? - ANS-C. By
paying returns to initial investors.
1 - 12 In fraud prosecution cases, what matter consists of the underlying data and all
corroborating information available. - ANS-A. evidential
1 - 13 Management fraud is often referred to as: - ANS-B. financial statement fraud.
1 - 14 One way that criminal law differs from civil law is that it: - ANS-B. must yield a
unanimous verdict.
1 - 15 Scammers often use their victim's ethnic identity to gain their trust and then steal
their life savings. This is an example of: - ANS-B. affinity fraud.
1 - 16 Telemarketing fraud usually falls into this category. - ANS-A. Investment scams
1 - 17 The ACFE includes three major categories of occupational fraud EXCEPT: -
ANS-D. pension fraud.
1 - 18 The Anti-Kickback Act of 1986 intends to prevent: - ANS-C. the giving or
receiving of any thing of value by a subcontractor to a prime contractor.
1 - 19 The burden of proof in a criminal case must - ANS-A. be beyond a reasonable
doubt
1 - 20 The elements of fraud include all of the following EXCEPT: - ANS-C. the
misrepresentation is known to the victim.
1 - 21 The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT: -
ANS-C. bribes may be deducted as legitimate business expenses.
1 - 22 The GDP in the economy of Ponziland was $5 billion in the year prior to the
frauds (year 1). The economy were growing at 4 percent. Frauds during the year reduce
aggregate income by $200 million. During the year, the economy has: - ANS-C.
remained flat.
1 - 23 The most common fraud committed on behalf of an organization is: - ANS-C.
Fraudulent financial reporting
1 - 24 The word "con," which means to deceive, comes from the word: - ANS-D.
Confidence.
UPDATE QUESTIONS AND CORRECT VERIFIED
ANSWERS ALREADY GRADED A+
1 - 1 A company is a victim of a $414 million fraud. At that time its profit margin is 10%.
How much additional revenue should the company generate in order to recover the
effect on net income? - ANS-C. $4.14 billion
1 - 2 A company was the victim of several frauds that totaled approximately $10 million
in one year. With a profit margin of 10 percent, and assuming that the company's
product sold for $1,000 per unit, how many additional units must the company sell to
compensate for the fraud losses? - ANS-C. 100,000
1 - 3 Civil claims begin when one party files a complaint against another, usually for the
purpose of: - ANS-D. financial restitution.
1 - 4 Customer fraud includes all of the following EXCEPT: - ANS-C. Fraud
perpetrated through collusion between buyers and vendors.
1 - 5 Employee embezzlement can be direct or indirect. Indirect fraud occurs when: -
ANS-C. an employee receives a kickback from a vendor.
1 - 6 Fraud has a direct dollar for dollar impact on a company's - ANS-B. Net income.
1 - 7 Fraud in companies such as WorldCom, Enron, Waste Management, Sunbeam,
Rite-Aid, Phar-Mor, Parmalat, and ZZZZBest are examples of: - ANS-D. Management
fraud.
1 - 8 Generally applicants for CFE certification should have a minimum of a bachelor's
degree or equivalent from an institution of higher learning. Alternatively if applicants do
not have a bachelor's degree, they may substitute how many months of fraud-related
professional experience for each year of academic study. - ANS-A. 24
1 - 9 Given below are the profit margins and fraud related losses of four economies.
Which economy will have to generate the maximum dollar amount of additional
revenues to recover the loss to aggregate income? Economy A 10% $225 million -
Economy B 10% $150 million - Economy C 5% $100 million - Economy D 2% $ 50
million - ANS-B. Economy D
1 - 10 Government agencies such as the FBI, FDIC, IRS, or various health agencies
publish fraud statistics from time to time. Which of the following observations concerning
, such statistics is true? - ANS-C. They provide only those statistics related to their
jurisdiction.
1 - 11 How is the confidence element established in a Ponzi scheme? - ANS-C. By
paying returns to initial investors.
1 - 12 In fraud prosecution cases, what matter consists of the underlying data and all
corroborating information available. - ANS-A. evidential
1 - 13 Management fraud is often referred to as: - ANS-B. financial statement fraud.
1 - 14 One way that criminal law differs from civil law is that it: - ANS-B. must yield a
unanimous verdict.
1 - 15 Scammers often use their victim's ethnic identity to gain their trust and then steal
their life savings. This is an example of: - ANS-B. affinity fraud.
1 - 16 Telemarketing fraud usually falls into this category. - ANS-A. Investment scams
1 - 17 The ACFE includes three major categories of occupational fraud EXCEPT: -
ANS-D. pension fraud.
1 - 18 The Anti-Kickback Act of 1986 intends to prevent: - ANS-C. the giving or
receiving of any thing of value by a subcontractor to a prime contractor.
1 - 19 The burden of proof in a criminal case must - ANS-A. be beyond a reasonable
doubt
1 - 20 The elements of fraud include all of the following EXCEPT: - ANS-C. the
misrepresentation is known to the victim.
1 - 21 The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT: -
ANS-C. bribes may be deducted as legitimate business expenses.
1 - 22 The GDP in the economy of Ponziland was $5 billion in the year prior to the
frauds (year 1). The economy were growing at 4 percent. Frauds during the year reduce
aggregate income by $200 million. During the year, the economy has: - ANS-C.
remained flat.
1 - 23 The most common fraud committed on behalf of an organization is: - ANS-C.
Fraudulent financial reporting
1 - 24 The word "con," which means to deceive, comes from the word: - ANS-D.
Confidence.
