CFCI Study Guide Questions and Answers |Fall 2026/2027
Update
Question 1
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."
Question 2
Main types of fraud
Correct Answer
Internal Fraud and External Fraud
Question 3
Internal Fraud
Correct Answer
which involves the employees of the company against which the fraud is perpetrated
Page 1 of 41
,Question 4
External Fraud
Correct Answer
deceptive conduct by non-employees that
deprives the organization of value, and/or is undertaken for financial gain.
Question 5
embezzlement
Correct Answer
theft or misappropriation of funds placed in one's trust or belonging to one's employer.
Question 6
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.
Page 2 of 41
,Question 7
Skimming (cash larceny)
Correct Answer
Accounts receivable fraud, this
involves simply stealing cash before it enters the organization's accounting system.
Question 8
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.
Question 9
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.
Question 10
Employee reimbursement scheme
Correct Answer
making false claims for reimbursement, or inflating or creating fictitious business expenses. (Travel /meal reimbursement.
Page 3 of 41
, Question 11
corruption
Correct Answer
Bribery, illegal gratuities, and/or extortion.
Question 12
bribery
Correct Answer
when something of value is offered or given to influence a business decision
Question 13
Illegal Gratuities
Correct Answer
when something of value is given to an employee to reward a business decision.
Question 14
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.
Page 4 of 41
Update
Question 1
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."
Question 2
Main types of fraud
Correct Answer
Internal Fraud and External Fraud
Question 3
Internal Fraud
Correct Answer
which involves the employees of the company against which the fraud is perpetrated
Page 1 of 41
,Question 4
External Fraud
Correct Answer
deceptive conduct by non-employees that
deprives the organization of value, and/or is undertaken for financial gain.
Question 5
embezzlement
Correct Answer
theft or misappropriation of funds placed in one's trust or belonging to one's employer.
Question 6
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.
Page 2 of 41
,Question 7
Skimming (cash larceny)
Correct Answer
Accounts receivable fraud, this
involves simply stealing cash before it enters the organization's accounting system.
Question 8
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.
Question 9
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.
Question 10
Employee reimbursement scheme
Correct Answer
making false claims for reimbursement, or inflating or creating fictitious business expenses. (Travel /meal reimbursement.
Page 3 of 41
, Question 11
corruption
Correct Answer
Bribery, illegal gratuities, and/or extortion.
Question 12
bribery
Correct Answer
when something of value is offered or given to influence a business decision
Question 13
Illegal Gratuities
Correct Answer
when something of value is given to an employee to reward a business decision.
Question 14
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.
Page 4 of 41
