Certified Fraud Examiner Practice Exam 2025 – All-in-One Guide to Master Your Certification!

The correct answer is based on the characteristics of the fraudulent activity described in the question. A fictitious refund scheme involves an employee preparing and submitting fraudulent returns for merchandise that was never actually purchased or does not exist. This can entail the use of fake receipts or manipulated sales records to make it appear as though a legitimate return is being processed.

In these cases, the employee typically gains financially by receiving cash or store credit, effectively stealing from the company through this deceptive method. The scheme relies on the exploitation of the return process, where the employee can create an illusion of a transaction that never occurred.

The other options represent different types of fraud unrelated to the action of returning non-existent merchandise. For instance, a foreign bank account scheme typically involves hiding funds in offshore accounts to evade taxes, while a frivolous tax return scheme focuses on submitting false information to claim refunds improperly. A gap testing scheme relates to analysis methods in testing controls, and does not pertain to fraudulent transactions. Thus, they do not match the specifics laid out in the question.