NYC ASSOCIATE FRAUD INVESTIGATOR EXAM PRACTICE QUESTIONS
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The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
A. Not reporting bribe income may be grounds for being charged with tax evasion
B. Filing income tax that excludes income from fraud may be considered an improper tax filing
C. Bribes paid may be deducted as business expenses
D. Failure to report income from fraud may be grounds for being charged with tax evasion - Answer
☑☑- C. Bribes paid may be deducted as business expenses
What is required to prove fraud, as opposed to negligence?
A. Gross error
B. Intent
C. Preponderance of the evidence
D. Confession from the perpetrator - Answer ☑☑- B. Intent
Which of the following is a common example of vendor fraud?
A. Fraud perpetrated through collusion between buyers and vendors.
B. Fraud perpetrated by upper management.
C. The perpetrator physically removes the inventory from the business premises.
D. A fraud perpetrated through financial statement manipulation. - Answer ☑☑- A. Fraud perpetrated
through collusion between buyers and vendors.
Fraud has a direct dollar-for-dollar impact on a company's:
A. Revenues
B. Net income
C. Profit margin
D. Stock price - Answer ☑☑- B. Net income
The elements of fraud include all of the following EXCEPT:
Page | 1
,A. A material point is misrepresented
B. The misrepresentation is intentional
C. The misrepresentation is known to the victim
D. The victim must sustain damages - Answer ☑☑- C. The misrepresentation is known to the victim
Which of the following statements about criminal and civil cases is correct?
A. The purpose of a criminal case is "to right a wrong," the purpose of a civil case is to obtain a remedy
B. A jury must have 12 people in civil cases, but in criminal cases may consist of fewer than 12 persons
C. Both criminal cases and civil cases require a fraud perpetrator to make payments for damages
D. Only one claim may be tried at a time in civil cases, but in criminal cases, various claims may be
joined in one action - Answer ☑☑- A. The purpose of a criminal case is "to right a wrong," the purpose
of a civil case is to obtain a remedy
The victim is a company or organization in all of the following EXCEPT:
A. Vendor fraud
B. Investment scams
C. Employee embezzlement
D. Customer fraud - Answer ☑☑- B. Investment scams
Which of the following entails an insider who has material inside information purchasing or selling the
company's securities through insider deals directly or through an exchange?
A. Bank fraud
B. Ponzi scheme
C. Management (financial statement) frauds
D. Securities fraud - Answer ☑☑- D. Securities fraud
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 ______ months of fraud-related professional experience for each year of academic study.
A. 24
Page | 2
,B. 18
C. 12
D. 9 - Answer ☑☑- A. 24
Fraud in companies such as WorldCom, Enron, Waste Management, Sunbeam, Rite-Aid, Phar-Mor, and
Parmalat are examples of:
A. Customer fraud
B. Investment scams
C. Vendor fraud
D. Management fraud - Answer ☑☑- D. Management fraud
To be successful, plaintiffs in civil cases must prove their case by which of the following?
A. By the preponderance of the evidence
B. Beyond a reasonable doubt
C. To a degree of reasonable mitigation
D. To the standard of prima facie - Answer ☑☑- A. By the preponderance of the evidence
Which of the following frauds is usually the most expensive?
A. Vendor fraud
B. Customer fraud
C. Occupational fraud
D. Management (financial statement) fraud - Answer ☑☑- D. Management (financial statement) fraud
Telemarketing fraud usually falls into this category.
A. Investment scams
B. Management fraud
C. Vendor fraud
D. Embezzlement - Answer ☑☑- A. Investment scams
In fraud prosecution cases, ______ matter consists of the underlying data and all corroborating
information available.
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, A. Evidential
B. Remedial
C. Supplemental
D. Elementary - Answer ☑☑- A. Evidential
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?
A. 1 million
B. 100 million
C. 100,000
D. 10,000 - Answer ☑☑- C. 100,000
What is the single most critical element for a fraud to be successful?
A. Criminal intent
B. Confidence
C. Greed
D. Compulsion - Answer ☑☑- B. Confidence
Which of the following skills would be LEAST beneficial in a carrer as a fraud-fighting professional?
A. Analytical skills
B. Mechanical skills
C. Communication skills
D. Technology skills - Answer ☑☑- B. Mechanical skills
Which of the following statements regarding fraud on behalf of an organization is true?
A. Middle management is usually the perpetrator
B. This type of fraud benefits top executives as it generally increases stock price
C. This type of fraud includes deflating expenses in order to save on corporate income taxes
Page | 4
AND ANSWERS | VERIFIED AND WELL DETAILED ANSWERS | ALREADY
GRADED A+ | 100% PASS GUARANTEED | LATEST EXAM UPDATE
The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
A. Not reporting bribe income may be grounds for being charged with tax evasion
B. Filing income tax that excludes income from fraud may be considered an improper tax filing
C. Bribes paid may be deducted as business expenses
D. Failure to report income from fraud may be grounds for being charged with tax evasion - Answer
☑☑- C. Bribes paid may be deducted as business expenses
What is required to prove fraud, as opposed to negligence?
A. Gross error
B. Intent
C. Preponderance of the evidence
D. Confession from the perpetrator - Answer ☑☑- B. Intent
Which of the following is a common example of vendor fraud?
A. Fraud perpetrated through collusion between buyers and vendors.
B. Fraud perpetrated by upper management.
C. The perpetrator physically removes the inventory from the business premises.
D. A fraud perpetrated through financial statement manipulation. - Answer ☑☑- A. Fraud perpetrated
through collusion between buyers and vendors.
Fraud has a direct dollar-for-dollar impact on a company's:
A. Revenues
B. Net income
C. Profit margin
D. Stock price - Answer ☑☑- B. Net income
The elements of fraud include all of the following EXCEPT:
Page | 1
,A. A material point is misrepresented
B. The misrepresentation is intentional
C. The misrepresentation is known to the victim
D. The victim must sustain damages - Answer ☑☑- C. The misrepresentation is known to the victim
Which of the following statements about criminal and civil cases is correct?
A. The purpose of a criminal case is "to right a wrong," the purpose of a civil case is to obtain a remedy
B. A jury must have 12 people in civil cases, but in criminal cases may consist of fewer than 12 persons
C. Both criminal cases and civil cases require a fraud perpetrator to make payments for damages
D. Only one claim may be tried at a time in civil cases, but in criminal cases, various claims may be
joined in one action - Answer ☑☑- A. The purpose of a criminal case is "to right a wrong," the purpose
of a civil case is to obtain a remedy
The victim is a company or organization in all of the following EXCEPT:
A. Vendor fraud
B. Investment scams
C. Employee embezzlement
D. Customer fraud - Answer ☑☑- B. Investment scams
Which of the following entails an insider who has material inside information purchasing or selling the
company's securities through insider deals directly or through an exchange?
A. Bank fraud
B. Ponzi scheme
C. Management (financial statement) frauds
D. Securities fraud - Answer ☑☑- D. Securities fraud
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 ______ months of fraud-related professional experience for each year of academic study.
A. 24
Page | 2
,B. 18
C. 12
D. 9 - Answer ☑☑- A. 24
Fraud in companies such as WorldCom, Enron, Waste Management, Sunbeam, Rite-Aid, Phar-Mor, and
Parmalat are examples of:
A. Customer fraud
B. Investment scams
C. Vendor fraud
D. Management fraud - Answer ☑☑- D. Management fraud
To be successful, plaintiffs in civil cases must prove their case by which of the following?
A. By the preponderance of the evidence
B. Beyond a reasonable doubt
C. To a degree of reasonable mitigation
D. To the standard of prima facie - Answer ☑☑- A. By the preponderance of the evidence
Which of the following frauds is usually the most expensive?
A. Vendor fraud
B. Customer fraud
C. Occupational fraud
D. Management (financial statement) fraud - Answer ☑☑- D. Management (financial statement) fraud
Telemarketing fraud usually falls into this category.
A. Investment scams
B. Management fraud
C. Vendor fraud
D. Embezzlement - Answer ☑☑- A. Investment scams
In fraud prosecution cases, ______ matter consists of the underlying data and all corroborating
information available.
Page | 3
, A. Evidential
B. Remedial
C. Supplemental
D. Elementary - Answer ☑☑- A. Evidential
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?
A. 1 million
B. 100 million
C. 100,000
D. 10,000 - Answer ☑☑- C. 100,000
What is the single most critical element for a fraud to be successful?
A. Criminal intent
B. Confidence
C. Greed
D. Compulsion - Answer ☑☑- B. Confidence
Which of the following skills would be LEAST beneficial in a carrer as a fraud-fighting professional?
A. Analytical skills
B. Mechanical skills
C. Communication skills
D. Technology skills - Answer ☑☑- B. Mechanical skills
Which of the following statements regarding fraud on behalf of an organization is true?
A. Middle management is usually the perpetrator
B. This type of fraud benefits top executives as it generally increases stock price
C. This type of fraud includes deflating expenses in order to save on corporate income taxes
Page | 4
