Certified Fraud Examiner (CFE) — Question 2

How many accounts are affected in fraudulent accounting entries and therefore same number of categories on the financial statement?

Answer options

• A. One
• B. At least two
• C. More than two
• D. None of above

Correct answer: A

Explanation

The correct answer is A because fraudulent accounting entries typically manipulate a single account, which directly affects one category on the financial statement. Options B and C suggest multiple accounts are involved, which is not the case for a single fraudulent entry, while option D incorrectly states that no accounts are affected.