ACFE CFE-Fraud-Schemes-and-Financial-Crimes Exam Dumps

The correct answer is B. A request to send payment to a country different from where the third party conducts business is a significant red flag in corruption and bribery schemes. Such payment instructions can indicate attempts to conceal beneficial ownership, route funds through offshore accounts, disguise improper commissions, or make corrupt payments difficult to trace. Option A is not necessarily suspicious because many legitimate vendors use one business address and phone number. Option C can reflect legitimate competitive strength if the vendor truly provides superior services. Option D is also not inherently suspicious because lower prices may result from efficiency or market strategy. Fraud examiners should treat unusual third-party payment destinations as high-risk indicators requiring enhanced due diligence and documentation review.

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Rationale for Correct Answer:

This is unbundling, where services that should be billed under a single comprehensive code are split into multiple components to inflate reimbursement.

Analysis of Incorrect Options:

A . Fictitious services -- Charging for services not performed.

B . False diagnosis -- Fabricating diagnoses to justify billing.

C . Upcoding -- Billing for more expensive services than provided.

Key Concept: Health care billing fraud --- unbundling.

Rationale for Correct Answer: In the detection and analysis phase of cybersecurity

Analysis of Incorrect Options:

A . Limiting damage -- This occurs in the containment phase.

B . Creating an incident response plan -- This is part of the preparation phase.

C . Restoring control of affected systems -- This occurs during eradication and recovery.

Key Concept: Incident response methodology: preparation detection/analysis containment eradication recovery.

Rationale for Correct Answer:

The journal is specifically the chronological record of transactions. Each entry captures date, accounts affected, amounts, and explanation, making it the foundational record before posting to the ledger.

Analysis of Incorrect Options:

A . Asset -- Not a record, but a resource.

C . Checkbook -- Only records cash movements, not all transactions.

D . Ledger -- Summarizes accounts, but not in chronological order.

Key Concept:

Chronological recording of transactions via the journal.

ACFE Fraud Examiners Manual (2020 International Edition), Accounting Concepts --- Journal vs. Ledger.

Rationale for Correct Answer:

Gross profit = Net sales -- Cost of Goods Sold (COGS). This is the correct definition, as per standard accounting principles.

Analysis of Incorrect Options:

A . Gross revenue -- Defined as total sales before deductions, not after.

B . Net profit -- Net profit is after all expenses (operating, interest, taxes), not before.

D . Operating expenses -- Appear after gross profit, not at the top.

Key Concept: Income statement structure and key definitions.