SOFA-CFE Exam Questions

The tax components of continuing operations typically include which of the following:

Tax expense for interim periods is measured using an estimated ______________of the annual period.

With what method, companies are required to estimate the amount and effect of the yearend cumulative temporary differences including any amount of valuation allowance to be recorde...

The annual reports from certain insurers to their shareholders must conform to specific SEC disclosure requirements. According to the Securities and Exchange Commission (SEC), whic...

Which form of Securities Act of 1933 is used to register shares offered in connection with business combinations, transactions and exchange offers?

What is that portion of the registration statement which provides principally, transaction oriented information, and which is distributed by securities underwriters to prospective...

Which is the form usually used to fulfill annual reporting requirements under the Securities Exchange Act of 1934?

In order to properly determine the filing deadlines for Form 10-K (and Form 10-Q), a registrant must first determine whether it is:

___________is a devise whereby a stockholder authorizes another person or group of persons to act for him at a meeting of stockholders.

Reports of the audit committees in their proxy statements; in the report, the audit committee must state whether the audit committee has:

What lays out specific requirements relating to corporate conduct, public accounting profession oversight, auditor independence and financial reporting and disclosure?

A company must agree to notify the New York Stock Exchange promptly if which of the following several enumerated events occur:

What is probably the most difficult schedule within the Annual Statement blank with which to get comfortable, given the breadth and depth of information it contains?

A reduction in reserves is referred to as__________________, while an increase in reserves is referred to as________________.

A combined ratio under 100 percent reflects an underwriting profit, with a combined ratio above 100 percent reflecting an underwriting loss.

What is computed by summing the loss reserve liabilities and the unearned premium reserve and then dividing that sum by policyholder surplus?

The first phase, is the _____________of the system, produces the widely recognized Insurance Regulatory Information System (IRIS) ratios.

What compares an insurer's adjusted surplus relative to the required capital necessary to support its operating and investment risks?

In which scheme, the employees do not submit the vendor's invoices; rather, they intentionally mishandle payments that are owed to the legitimate vendors?

Fraudsters in what type of fraud buy an item and submit the bill to the employer as if it represented a purchase on behalf of the company?

The chief control document in many vouchers is the purchase order.

Sale orders also can be altered by employees who seek to obtain merchandise at their employer's expense.

Purchases on ______________ may require a signature or other form of authorization from a designated company representative.

To analyze vendor purchases for abnormal levels on both a monthly and a yearly basis, is the billing scheme prevention method which is helpful in:

The perpetrators of which frauds produce false documents that cause the victim company to unwittingly make a fraudulent disbursement?

The major difference between fraud and billing schemes is that payroll and expense frauds involve disbursements to external parties rather than to employees.

Payroll fraud schemes are significantly more likely to be detected by:

Which of the following is NOT the category of payroll fraud?

______________ refers to someone on the payroll who does not actually work for the victim company.

In order for a ghost employee scheme to work, which thing must NOT happen?

The heart of which scheme is in the falsification of payroll records and timekeeping information?

_____________ is a more difficult problem when the ghost is a former employee who was simply not removed from the payroll.

The most common method of misappropriating funds from the payroll is the:

Which of the following is the method for the employee to obtain the needed authorization?

A unique form of compensation that is not based on hours worked or a set yearly salary, but rather on an employee's revenue output.

In what way the employees on commission can fraudulently increase their pay?

Employees can falsify the amount of sales they have made in which of the following way?

Worker's compensation is not a payroll account, but rather an insurance expense.

The primary victim of what is not the employer but the insurance carrier for the employee?

Which of eth following is NOT the type of expense reimbursement scheme?

Almost three quarters of the cases involving expense reimbursement fraud were perpetrated by someone at:

Ghost employee schemes can be uncovered by having personnel distribute the payroll checks and by requiring positive identification of the payee.

Which of eth following is NOT the common method for concealing liabilities and expenses?

The costs that provide a benefit to a company over more than one accounting period are called:

_________________ are potential obligations that will materialize only if certain events occur in future.

According to Accounting Changes and Errors Corrections, which of the following is NOT the type accounting change that must be disclosed to avoid misleading the user of financial st...

Improper asset valuations usually fall into which of the following category?

To debit accounts receivables and credit sales is the typical entry under:

Which of the following is NOT the scheme of fixed assets that are subject to manipulation?

Which type of misstatements are considered relevant fro audit purpose?