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CFE-FRAUD-PREVENTION-AND-DETERRENCE Certified Fraud Examiner - Fraud Prevention and Deterrence

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ACFE · CFE-FRAUD-PREVENTION-AND-DETERRENCE

Free CFE-FRAUD-PREVENTION-AND-DETERRENCE Exam Dumps Preview

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Question 1

Single choice

Which of the following statements is FALSE?

A
Controls do little good in preventing theft and fraud if those at risk do not know of their presence
B
Most experts agree that it is harder to detect frauds than to prevent them
C
Conducting covert audits is among the most effective fraud prevention methods
D
Educating employees about company hotlines and reporting programs increases their perception of detection

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Correct answerA

Question 2

Single choice

Which of the following is FALSE regarding an organization's anti-fraud policy?

A
A detailed anti-fraud policy can make it easier to investigate and punish employees who commit fraud and other dishonest acts.
B
One of the most important considerations in developing the anti-fraud policy is to ensure every allegation is handled in a uniform-manner
C
To avoid legal problems in discharging employees, the anti-fraud policy should not include any specific examples of fraud and misconduct
D
In developing the anti-fraud policy, management should check with legal counsel regarding any legal considerations with respect to the policy

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Correct answerC

Question 3

Single choice

The objectives of a fraud risk management program include

A
Proactively identifying fraud risks
B
Limiting the damage caused by fraud occurrences
C
Punishing fraud perpetrators
D
All of the above

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Correct answerD

Question 4

Single choice

The Public Interest Oversight Board (PIOB) is the global body responsible for establishing international corporate governance standards.

A
True
B
False

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Correct answerB

Question 5

Single choice

Which of the following is NOT a responsibility of the organization s board of directors?

A
Acting as guardians of the organization s resources and assets
B
Managing the performance of employees charged with carrying out business activities
C
Assessing the strategy and underlying purpose of management's decisions and actions
D
Serving as the middlemen between shareholders and management

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Correct answerD

Question 6

Single choice

Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

A
A request that governments have in place an appropriate framework to support good corporate governance practices
B
Recognition of the importance of the role of stakeholders in corporate governance
C
Support for establishing stronger protection for foreign shareholders than for domestic shareholders
D
Guidance regarding appropriate board structures, responsibilities, and procedures

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Correct answerC

Question 7

Single choice

According to International Auditing Standard (ISA) 240. the two types of intentional financial statement misstatements that are relevant to the auditor are

A
Misstatements resulting from fraudulent financial reporting and misstatements resulting from misappropriation of assets
B
Misstatements resulting from revenue manipulation and misstatements resulting from expense manipulation
C
Misstatements affecting the income statement and misstatements affecting the balance sheet
D
Immaterial misstatements and material misstatements

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Correct answerC

Question 8

Single choice

Gray, an independent Certified Fraud Examiner (CFE). was hired by Green president of the ABC Corporation, to investigate allegations that one oi ABC s employees is taking kickbacks. During the investigation. Gray learns that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:

A
Tell the company's board of directors about Green
B
Report Green to law enforcement.
C
Resign from the engagement
D
Not disclose the information about Green.

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Correct answerB

Question 9

Single choice

Which of the following is NOT one of the three general approaches used to control corporate crime?

A
Consumer action to force change
B
Voluntary changes in corporate attitudes and structure
C
Media blacklisting of the organization
D
Strong intervention of the government

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Correct answerB

Question 10

Single choice

Effectively documenting and communicating organizational hierarchies, including the proper flow of information, can be a helpful tool in preventing fraud

A
True
B
False

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Correct answerA

Question 11

Single choice

In developing a corporate governance framework for an organization, directors and management must consider which of the following?

A
The organization s cultural environment
B
The organization s legal and regulatory environment
C
The organization s ethical environment
D
All of the above

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Correct answerD

Question 12

Single choice

During the course of a fraud examination. Stefan, an employee of Acme Inc., approaches Marten, a Certified Fraud Examiner (CFE) and fellow employee of Acme, and tells him that he knows of a major fraud being committed by the chief financial officer (CFO). However. Stefan says he can only provide details if Marten promises him absolute confidentiality.

How should Marten respond?

A
Agree that the information will be held in confidence, even though Marten knows it will not be
B
Take Stefan's request straight to Acme Inc.'s management
C
Tell Stefan that he will try to keep the information as confidential as possible
D
Not agree to the request for confidentiality

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Correct answerC

Question 13

Single choice

The Institute of Internal Auditors' (IIA) International Standards for the Professional Practice of Internal

Auditing states that

A
The internal auditor must apply the skill and care of an expert whose primary responsibility is investigating fraud
B
The internal auditor must apply the skill and care of an expert whose primary responsibility is detecting fraud.
C
The internal auditor must apply the skill and care of an unbiased, infallible audit professional.
D
The internal auditor must apply the skill and care of a reasonably prudent and competent internal auditor

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Correct answerC

Question 14

Single choice

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines_____________as "a process, effected by an entity s board of directors management. and other personnel designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance."

A
Fraud risk management
B
Corporate compliance
C
Internal control
D
Risk assessment

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Correct answerC

Question 15

Single choice

Jenny is a highly respected employee at XYZ Corp Her husbands gambling addiction has caused them to have a significant amount of debt Jenny begins stealing money from the company to cover her husbands gambling losses.
This situation best illustrates which leg of the Fraud Triangle?

A
Perceived opportunity
B
Rationalization
C
Perceived non-shareable financial need
D
Perceived acquiescence

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Correct answerC

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Certified Fraud Examiner - Fraud Prevention and Deterrence

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