ACFE Certified Fraud Examiner (CFE) Financial Transactions and Fraud Schemes Practice Exam

The technique of inspecting questioned goods or materials by examining packaging, appearance, and description is not appropriate for detecting a cost mischarging scheme involving labor. This is because the focus of a cost mischarging scheme typically centers around labor-related activities, such as overbilling for hours worked or charging for labor that was never actually performed. Therefore, evaluating physical goods or materials does not address the issue of potential discrepancies in labor charges.

The other techniques mentioned are relevant to labor cost analysis. Reviewing standard and actual labor rates can identify significant differences that may indicate mischarging. Examining the total hours expended on the contract and comparing those to hours billed can reveal inconsistencies, and comparing direct and indirect labor account totals across periods helps identify unusual fluctuations that could suggest fraudulent activities. Therefore, A stands out as unrelated to labor cost mischarging schemes.