Certified Fraud Examiner Practice Exam 2026 – All-in-One Guide to Master Your Certification!

A pass-through scheme in business typically involves taking advantage of price discrepancies in the marketplace, where an individual or entity buys a product at a lower cost and sells it at a higher price without adding any value to the product. This can sometimes involve deceptive practices in the selling process, giving the illusion that value has been added when it hasn't. While option A touches on the concept of buying low and selling high, it does not specifically encapsulate the essence of a pass-through scheme, which more commonly refers to other fraudulent activities.

Both options B and C clearly illustrate fraudulent strategies often associated with schemes involving manipulation of financial records. Setting up a company without any products suggests a façade meant to mislead stakeholders, while creating fake invoices for services that were never provided indicates a clear example of fraud where false financial representations are made for monetary gain. Option D involves legitimate business strategies but can lead to financial misrepresentation if used to inflate profits artificially.

Nevertheless, among the provided choices, understanding the broader context of how these options relate helps clarify the concept of fraudulent schemes in business practices.