Exam CFE - Financial Transactions and Fraud Schemes topic 1 question 127 discussion

Actual exam question from ACFE's CFE - Financial Transactions and Fraud Schemes

Question #: 127
Topic #: 1

[All CFE - Financial Transactions and Fraud Schemes Questions]

Which of the following is FALSE regarding electronic payment security?

A. The lack of physical evidence makes electronic payment tampering more difficult to detect than traditional check tampering.
B. The individual who makes electronic payments on the company's behalf should also set up ACH filters to ensure only designated individuals get paid
C. ACH blocks allow account holders to notify their banks that ACH debits should not be allowed on specific accounts.
D. Positive pay is recommended for ACH transactions to ensure their legitimacy.

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Suggested Answer: A 🗳️

by vynyfulu at April 5, 2025, 12:22 p.m.

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AjaiArjuna

3 months, 3 weeks ago

Selected Answer: B

This statement is FALSE because it violates a key internal control principle: segregation of duties. Allowing the same person to: Make electronic payments, and Set up ACH filters (controls which vendors get paid) …creates a fraud risk, as they would have too much control over the process without oversight.

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