Free FA-CERT sample questions

Correct answer: The Planning Phase

The Planning Phase of the data analysis process involves defining the objectives and scope of the analysis, understanding the business context, identifying relevant data sources, and developing hypotheses about potential fraud. The Preparation Phase involves data extraction and cleaning, while Testing involves the actual execution of analytical routines.

Correct answer: A complete ledger of accounts payable disbursement amounts for the fiscal year.

Benford's Law applies most accurately to naturally occurring sets of numbers that span multiple orders of magnitude and are not artificially constrained. Accounts payable disbursements fit this profile perfectly. Assigned numbers (like SSNs or sequential invoice numbers) and constrained numbers (like per diem rates) do not conform to Benford's Law.

Correct answers: It allows for the testing of 100% of the population rather than a limited subset.; It provides the ability to detect potential fraud in real-time or near-real-time.

Two primary advantages of data analytics and continuous monitoring are the ability to test 100% of the population (eliminating sampling risk) and the capability to detect anomalies in real-time or near-real-time. It does not eliminate false positives, nor does it replace the need for professional judgment.

Two primary advantages of data analytics and continuous monitoring are the ability to test 100% of the population (eliminating sampling risk) and the capability to detect anomalies in real-time or near-real-time. It does not eliminate false positives, nor does it replace the need for professional judgment.

Correct answer: Utilizing fuzzy matching algorithms to compare employee residential addresses, phone numbers, and tax ID formats against the vendor master file.

Fuzzy matching (or approximate string matching) is the most effective technique for detecting sophisticated shell company schemes because fraudsters often alter data slightly (e.g., '123 Main St.' vs '123 Main Street') to evade exact-match detection controls. While exact-match bank account joins are useful, fuzzy matching across multiple fields (addresses, phone numbers) provides a more comprehensive net for hidden relationships.

Correct answer: Extracting a list of employees who share the same bank routing and account number as another active employee.

Extracting employees who share the same bank account number is a classic test for ghost employees, as the fraudster who creates the fictitious employee must direct the payroll funds to an account they control (often their own). Overtime analysis detects overtime abuse, and missing tax withholdings could indicate other issues, but shared direct deposit accounts are a primary red flag for ghost employees.

Correct answer: True

A false positive is a result that incorrectly indicates that a particular condition or attribute is present. In fraud analytics, this means a transaction tripped the red flag parameters of the test, but upon human review, the transaction is found to have a valid business purpose.