WGU D551 FRAUD AND
FORENSIC ACCOUNTING
OBJECTIVE ASSESSMENT EXAM
LATEST MOCK PRACTICE SET
200 Questions with Answers and Detailed Rationales
100 PERCENT GUARANTEED PASS
INSTANT DOWNLOAD ANSWERS INCLUDED
IMPORTANCE OF THIS DOCUMENT
This comprehensive examination preparation guide has been meticulously developed to help you succeed in the
WGU D551 FRAUD AND FORENSIC ACCOUNTING OBJECTIVE ASSESSMENT EXAM 2026 | LATEST
PRACTICE QUESTIONS & ANSWERS | FRAUD DETECTION, FRAUD PREVENTION, INTERNAL
CONTROLS, FORENSIC ACCOUNTING, ACFE FRAUD TREE, FINANCIAL STATEMENT FRAUD, ASSET
MISAPPROPRIATION, CO. It contains 200 carefully selected questions that reflect the most current exam
content and testing strategies. Each question is accompanied by a correct answer and a detailed rationale that
explains the underlying pathophysiology, pharmacology, or clinical reasoning.
Self-Assessment – Test your knowledge and Exam Preparation – Familiarize yourself with the
identify areas requiring further question format and content
study areas
Concept Reinforcement – Deepen your Confidence Building – Develop test-taking
understanding through strategies and reduce
evidence-based exam anxiety
rationales
Time Management – Practice answering
questions under simulated
exam conditions
Review Summary 200 Questions
Foundations - Application - WGU D551 Fraud AND Forensic Accounting Objective Assessment 2026 &
Fraud Detection Fraud Prevention Internal Controls Forensic Accounting ACFE Fraud TREE Financial
Statement Fraud Asset Misappropriation CO Fraud AND Forensic Accounting Graduate
All answers with rationales
,Table of Contents
Content Area Questions Key Topics
WGU D551 Fraud AND 1-34 Fraud, Forensic, Internal, Control, Accountant
Forensic Accounting
Objective Assessment 2026
& Fraud Detection Fraud
Prevention Internal Controls
Forensic Accounting ACFE
Fraud TREE Financial
Statement Fraud Asset
Misappropriation CO Fraud
AND Forensic Accounting
Graduate
Forensic 35-68 Fraud, Financial, Scheme, Control, Internal
Accountant 69-102 Fraud, Forensic, Control, Scheme, Company S
Control 103-136 Fraud, Forensic, Accountant, Financial, Scheme
Scheme 137-170 Fraud, Forensic, Accountant, Control, Effective
Financial 171-200 Fraud, Forensic, Accountant, Scheme, Internal
TOTAL 200 All questions include answers and detailed rationales
,Section A - WGU D551 Fraud AND Forensic Accounting
Objective Assessment 2026 & Fraud Detection Fraud
Prevention Internal Controls Forensic Accounting ACFE
Fraud TREE Financial Statement Fraud Asset
Misappropriation CO Fraud AND Forensic Accounting
Graduate
Q1.
A forensic accountant discovers that a purchasing manager has been approving invoices
from a shell company that was created using a fictitious address. The manager is the sole
signatory on the shell company's bank account. Under the ACFE Fraud Tree, which
classification best describes this scheme?
A. Corruption - Conflicts of Interest B. Asset Misappropriation - Cash Larceny
C. Fraudulent Statements - Financial D. Asset Misappropriation - Billing Schemes
Statement Fraud
Correct: D - Asset Misappropriation - Billing Schemes
Rationale:The scheme involves submitting false invoices from a shell company, which is a
classic billing scheme under asset misappropriation. Corruption would involve a bribe or
extortion, cash larceny involves stealing cash on hand, and financial statement fraud involves
misstating financials. Billing schemes are specifically designed to generate payments to
fictitious vendors.
Q2.
Which internal control is most effective in preventing a payroll manager from adding
ghost employees and collecting their paychecks?
A. Mandatory vacation policy for payroll staff B. Segregation of duties between payroll
preparation and distribution
C. Background checks on all new hires D. Regular reconciliation of bank statements
Correct: B - Segregation of duties between payroll preparation and distribution
Rationale:Segregation of duties ensures that the person who sets up employees in the
payroll system is not the same person who distributes checks, making it harder to add ghost
employees without detection. Mandatory vacation can help but is not as direct. Background
checks and bank reconciliations are less preventive for this specific scheme.
Page 3
, Section A - WGU D551 Fraud AND Forensic Accounting Objective Assessment 2026 & Fraud Detection Fraud Prevention Internal Controls
Forensic Accounting ACFE Fraud TREE Financial Statement Fraud Asset Misappropriation CO Fraud AND Forensic Accounting Graduate
Q3.
In a financial statement fraud investigation, which red flag is most indicative of revenue
recognition manipulation?
A. A sudden increase in accounts receivable B. A decline in gross margin while revenue
turnover increases
C. A significant increase in revenue without D. A decrease in the allowance for doubtful
a corresponding increase in cash flow from accounts while sales are flat
operations
Correct: C - A significant increase in revenue without a corresponding increase in cash
flow from operations
Rationale:Revenue recognized but not collected in cash suggests that sales may be fictitious
or recorded prematurely. A/R turnover would decrease, not increase. Gross margin decline is
not directly tied to revenue recognition. Decrease in allowance could indicate earnings
management but not specifically revenue recognition.
Q4.
A forensic accountant is analyzing Benford's Law on a set of accounts payable data.
Which finding would most likely indicate anomalies?
A. The observed frequency of digit '1' as the B. The observed frequency of digit '9' as the
first digit is 30.1% first digit is 10.0%
C. The observed distribution matches D. The data set has exactly 1,000 invoices
expected frequencies for all digits
Correct: B - The observed frequency of digit '9' as the first digit is 10.0%
Rationale:Benford's Law expects digit '9' to appear as the first digit about 4.6% of the time; a
10% frequency is a significant deviation. Digit '1' at 30.1% is close to the expected 30.1%.
Matching distribution indicates normal data. Sample size of 1,000 is adequate but not a red
flag by itself.
Q5.
Which of the following is a key element of the fraud triangle that is most directly
addressed by implementing a strong internal control environment?
A. Rationalization B. Perceived opportunity
C. Perceived pressure D. Capability
Correct: B - Perceived opportunity
Page 4
FORENSIC ACCOUNTING
OBJECTIVE ASSESSMENT EXAM
LATEST MOCK PRACTICE SET
200 Questions with Answers and Detailed Rationales
100 PERCENT GUARANTEED PASS
INSTANT DOWNLOAD ANSWERS INCLUDED
IMPORTANCE OF THIS DOCUMENT
This comprehensive examination preparation guide has been meticulously developed to help you succeed in the
WGU D551 FRAUD AND FORENSIC ACCOUNTING OBJECTIVE ASSESSMENT EXAM 2026 | LATEST
PRACTICE QUESTIONS & ANSWERS | FRAUD DETECTION, FRAUD PREVENTION, INTERNAL
CONTROLS, FORENSIC ACCOUNTING, ACFE FRAUD TREE, FINANCIAL STATEMENT FRAUD, ASSET
MISAPPROPRIATION, CO. It contains 200 carefully selected questions that reflect the most current exam
content and testing strategies. Each question is accompanied by a correct answer and a detailed rationale that
explains the underlying pathophysiology, pharmacology, or clinical reasoning.
Self-Assessment – Test your knowledge and Exam Preparation – Familiarize yourself with the
identify areas requiring further question format and content
study areas
Concept Reinforcement – Deepen your Confidence Building – Develop test-taking
understanding through strategies and reduce
evidence-based exam anxiety
rationales
Time Management – Practice answering
questions under simulated
exam conditions
Review Summary 200 Questions
Foundations - Application - WGU D551 Fraud AND Forensic Accounting Objective Assessment 2026 &
Fraud Detection Fraud Prevention Internal Controls Forensic Accounting ACFE Fraud TREE Financial
Statement Fraud Asset Misappropriation CO Fraud AND Forensic Accounting Graduate
All answers with rationales
,Table of Contents
Content Area Questions Key Topics
WGU D551 Fraud AND 1-34 Fraud, Forensic, Internal, Control, Accountant
Forensic Accounting
Objective Assessment 2026
& Fraud Detection Fraud
Prevention Internal Controls
Forensic Accounting ACFE
Fraud TREE Financial
Statement Fraud Asset
Misappropriation CO Fraud
AND Forensic Accounting
Graduate
Forensic 35-68 Fraud, Financial, Scheme, Control, Internal
Accountant 69-102 Fraud, Forensic, Control, Scheme, Company S
Control 103-136 Fraud, Forensic, Accountant, Financial, Scheme
Scheme 137-170 Fraud, Forensic, Accountant, Control, Effective
Financial 171-200 Fraud, Forensic, Accountant, Scheme, Internal
TOTAL 200 All questions include answers and detailed rationales
,Section A - WGU D551 Fraud AND Forensic Accounting
Objective Assessment 2026 & Fraud Detection Fraud
Prevention Internal Controls Forensic Accounting ACFE
Fraud TREE Financial Statement Fraud Asset
Misappropriation CO Fraud AND Forensic Accounting
Graduate
Q1.
A forensic accountant discovers that a purchasing manager has been approving invoices
from a shell company that was created using a fictitious address. The manager is the sole
signatory on the shell company's bank account. Under the ACFE Fraud Tree, which
classification best describes this scheme?
A. Corruption - Conflicts of Interest B. Asset Misappropriation - Cash Larceny
C. Fraudulent Statements - Financial D. Asset Misappropriation - Billing Schemes
Statement Fraud
Correct: D - Asset Misappropriation - Billing Schemes
Rationale:The scheme involves submitting false invoices from a shell company, which is a
classic billing scheme under asset misappropriation. Corruption would involve a bribe or
extortion, cash larceny involves stealing cash on hand, and financial statement fraud involves
misstating financials. Billing schemes are specifically designed to generate payments to
fictitious vendors.
Q2.
Which internal control is most effective in preventing a payroll manager from adding
ghost employees and collecting their paychecks?
A. Mandatory vacation policy for payroll staff B. Segregation of duties between payroll
preparation and distribution
C. Background checks on all new hires D. Regular reconciliation of bank statements
Correct: B - Segregation of duties between payroll preparation and distribution
Rationale:Segregation of duties ensures that the person who sets up employees in the
payroll system is not the same person who distributes checks, making it harder to add ghost
employees without detection. Mandatory vacation can help but is not as direct. Background
checks and bank reconciliations are less preventive for this specific scheme.
Page 3
, Section A - WGU D551 Fraud AND Forensic Accounting Objective Assessment 2026 & Fraud Detection Fraud Prevention Internal Controls
Forensic Accounting ACFE Fraud TREE Financial Statement Fraud Asset Misappropriation CO Fraud AND Forensic Accounting Graduate
Q3.
In a financial statement fraud investigation, which red flag is most indicative of revenue
recognition manipulation?
A. A sudden increase in accounts receivable B. A decline in gross margin while revenue
turnover increases
C. A significant increase in revenue without D. A decrease in the allowance for doubtful
a corresponding increase in cash flow from accounts while sales are flat
operations
Correct: C - A significant increase in revenue without a corresponding increase in cash
flow from operations
Rationale:Revenue recognized but not collected in cash suggests that sales may be fictitious
or recorded prematurely. A/R turnover would decrease, not increase. Gross margin decline is
not directly tied to revenue recognition. Decrease in allowance could indicate earnings
management but not specifically revenue recognition.
Q4.
A forensic accountant is analyzing Benford's Law on a set of accounts payable data.
Which finding would most likely indicate anomalies?
A. The observed frequency of digit '1' as the B. The observed frequency of digit '9' as the
first digit is 30.1% first digit is 10.0%
C. The observed distribution matches D. The data set has exactly 1,000 invoices
expected frequencies for all digits
Correct: B - The observed frequency of digit '9' as the first digit is 10.0%
Rationale:Benford's Law expects digit '9' to appear as the first digit about 4.6% of the time; a
10% frequency is a significant deviation. Digit '1' at 30.1% is close to the expected 30.1%.
Matching distribution indicates normal data. Sample size of 1,000 is adequate but not a red
flag by itself.
Q5.
Which of the following is a key element of the fraud triangle that is most directly
addressed by implementing a strong internal control environment?
A. Rationalization B. Perceived opportunity
C. Perceived pressure D. Capability
Correct: B - Perceived opportunity
Page 4
