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CFCI STUDY GUIDE 2026 UPDATED ACTUAL
EXAM WITH CORRECT SOLUTIONS.
Fraud - correct answer- "Any illegal acts characterized by
| | | | | | | |
deceit, concealment, or violation of trust. These acts are not
| | | | | | | | | |
dependent upon the perpetrated by individuals and
| | | | | | |
organizations to obtain money, property, or services; to avoid
| | | | | | | | |
payment or loss of services; or to secure personal or business
| | | | | | | | | |
ad-vantage."
|
Main types of fraud - correct answer- Internal Fraud and External
| | | | | | | | | |
Fraud
|
Internal Fraud - correct answer- which involves the employees of
| | | | | | | | |
the company against which the fraud is perpetrated
| | | | | | | |
External Fraud - correct answer- deceptive conduct by non-
| | | | | | | |
employees that
| |
deprives the organization of value, and/or is undertaken for
| | | | | | | |
financial gain.
| |
embezzlement - correct answer- theft or misappropriation of | | | | | | |
funds placed in one's trust or belonging to one's employer.
| | | | | | | | | |
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| | | | | |
financial fraud - correct answer- "cooking the books." This type of
| | | | | | | | | |
fraud generally refers to falsely representing the financial
| | | | | | |
condition of the company, so as to inflate the value of stock,
| | | | | | | | | | | |
fraudulently boost executive bonuses, or otherwise mislead
| | | | | | |
shareholders, lenders, employees, investment analysts, or
| | | | | |
other users of the information.
| | | | |
Skimming (cash larceny) - correct answer- Accounts receivable
| | | | | | |
fraud, this
| |
involves simply stealing cash before it enters the organization's
| | | | | | | |
accounting system.
| |
Billing Schemes - correct answer- Perpetrated by employees who
| | | | | | | |
cause their employer to issue a payment to a false supplier by
| | | | | | | | | | | |
submitting invoices for fictitious goods or services, inflated
| | | | | | | |
invoices, or invoices for personal purchases.
| | | | | |
check tampering - correct answer- taking advantage of employee
| | | | | | | |
access to blank company checks, using a password to
| | | | | | | | |
steal computer-generated checks, or producing counterfeit
| | | | |
checks.
|
, 3 | Page
| | | | | |
Employee reimbursement scheme - correct answer- making false| | | | | | |
claims for reimbursement, or inflating or creating fictitious
| | | | | | | |
business expenses. (Travel /meal reimbursement.
| | | | |
corruption - correct answer- Bribery, illegal gratuities, and/or
| | | | | | |
extortion.
|
bribery - correct answer- when something of value is offered or
| | | | | | | | | |
given to influence a business decision
| | | | | |
Illegal Gratuities - correct answer- when something of value is
| | | | | | | | |
given to an employee to reward a business decision.
| | | | | | | | |
Extortion - correct answer- when a person demands payment or
| | | | | | | | |
seeks to influence a business decision by threat of harm
| | | | | | | | | |
through loss of business or personal injury.
| | | | | | |
Kickback Schemes - correct answer- involving employees and
| | | | | | |
vendors, often using inflated billing or invoices for which the
| | | | | | | | | |
employee is paid a portion of the inflated or fictitious invoice.
| | | | | | | | | | |
| | | | | |
CFCI STUDY GUIDE 2026 UPDATED ACTUAL
EXAM WITH CORRECT SOLUTIONS.
Fraud - correct answer- "Any illegal acts characterized by
| | | | | | | |
deceit, concealment, or violation of trust. These acts are not
| | | | | | | | | |
dependent upon the perpetrated by individuals and
| | | | | | |
organizations to obtain money, property, or services; to avoid
| | | | | | | | |
payment or loss of services; or to secure personal or business
| | | | | | | | | |
ad-vantage."
|
Main types of fraud - correct answer- Internal Fraud and External
| | | | | | | | | |
Fraud
|
Internal Fraud - correct answer- which involves the employees of
| | | | | | | | |
the company against which the fraud is perpetrated
| | | | | | | |
External Fraud - correct answer- deceptive conduct by non-
| | | | | | | |
employees that
| |
deprives the organization of value, and/or is undertaken for
| | | | | | | |
financial gain.
| |
embezzlement - correct answer- theft or misappropriation of | | | | | | |
funds placed in one's trust or belonging to one's employer.
| | | | | | | | | |
,2 | Page
| | | | | |
financial fraud - correct answer- "cooking the books." This type of
| | | | | | | | | |
fraud generally refers to falsely representing the financial
| | | | | | |
condition of the company, so as to inflate the value of stock,
| | | | | | | | | | | |
fraudulently boost executive bonuses, or otherwise mislead
| | | | | | |
shareholders, lenders, employees, investment analysts, or
| | | | | |
other users of the information.
| | | | |
Skimming (cash larceny) - correct answer- Accounts receivable
| | | | | | |
fraud, this
| |
involves simply stealing cash before it enters the organization's
| | | | | | | |
accounting system.
| |
Billing Schemes - correct answer- Perpetrated by employees who
| | | | | | | |
cause their employer to issue a payment to a false supplier by
| | | | | | | | | | | |
submitting invoices for fictitious goods or services, inflated
| | | | | | | |
invoices, or invoices for personal purchases.
| | | | | |
check tampering - correct answer- taking advantage of employee
| | | | | | | |
access to blank company checks, using a password to
| | | | | | | | |
steal computer-generated checks, or producing counterfeit
| | | | |
checks.
|
, 3 | Page
| | | | | |
Employee reimbursement scheme - correct answer- making false| | | | | | |
claims for reimbursement, or inflating or creating fictitious
| | | | | | | |
business expenses. (Travel /meal reimbursement.
| | | | |
corruption - correct answer- Bribery, illegal gratuities, and/or
| | | | | | |
extortion.
|
bribery - correct answer- when something of value is offered or
| | | | | | | | | |
given to influence a business decision
| | | | | |
Illegal Gratuities - correct answer- when something of value is
| | | | | | | | |
given to an employee to reward a business decision.
| | | | | | | | |
Extortion - correct answer- when a person demands payment or
| | | | | | | | |
seeks to influence a business decision by threat of harm
| | | | | | | | | |
through loss of business or personal injury.
| | | | | | |
Kickback Schemes - correct answer- involving employees and
| | | | | | |
vendors, often using inflated billing or invoices for which the
| | | | | | | | | |
employee is paid a portion of the inflated or fictitious invoice.
| | | | | | | | | | |
