ACFE CFE-FRAUD-PREVENTION-AND-DETERRENCE Online Practice Questions and Exam Preparation

ACFE CFE-FRAUD-PREVENTION-AND-DETERRENCE Online Questions & Answers

• Question 1:

  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
  D. Serving as the middlemen between shareholders and management

• Question 2:

  Employees should be kepi unaware that management is watching for lifestyle and behavior changes in staff members that might indicate fraud

  A. True
  B. False
  A. True

• Question 3:

  Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?

  A. Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program s effectiveness
  B. Management should express risk appetite in a manner that is appropriate for and unique to the organization s culture and operations.
  C. Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented them.
  D. Management must consider the total amount of fraud risk it is willing to accept when determining fraud risk management objectives
  D. Management must consider the total amount of fraud risk it is willing to accept when determining fraud risk management objectives

• Question 4:

  Which of the following is a detective anti-fraud control?

  A. Separation of duties
  B. Hiring policies and procedures
  C. Independent reconciliations
  D. Fraud awareness training
  A. Separation of duties

• Question 5:

  The existence of many specialized departments within a company generally decreases the overall risk of fraud within the organization

  A. True
  B. False
  A. True

• Question 6:

  According to The Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing, which of the following should the internal audit team evaluate in its assessment of the risk management process?

  A. The materiality of the organization s financial statements
  B. The organization s fraud risk management initiatives
  C. The management team's assessment of the internal controls over financial reporting
  D. The organization s risk exposures relating to the sale of assets
  B. The organization s fraud risk management initiatives

• Question 7:

  Which of the following is FALSE regarding proactive fraud auditing procedures?

  A. Implementing proactive fraud audit procedures demonstrates management's intention to aggressively seek out possible fraudulent conduct
  B. Fraud audit procedures should be designed to incorporate an element of surprise.
  C. Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods
  D. Fraud assessment questioning techniques are most appropriately used as part of the normal audit process
  C. Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods

• Question 8:

  As part of her audit of ABC Corp . Rachel, a CPA. is identifying the risks of material misstatement due to fraud As part of this task, she should evaluate any unexpected relationships that she identified in performing analytical procedures.

  A. True
  B. False
  A. True

• Question 9:

  Open-door management policies are a fraud prevention mechanism that addresses which leg of the Fraud Triangle?

  A. Opportunity
  B. Willingness
  C. Lack of integrity
  D. Pressure
  A. Opportunity

• Question 10:

  Which of the following is among the audit committee s primary responsibilities related to fraud risk management?

  A. Understanding how internal and external audit strategies address fraud risk
  B. Designing the fraud risk management program
  C. Punishing fraud perpetrators discovered through fraud risk management activities
  D. Implementing the fraud risk management program
  B. Designing the fraud risk management program