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

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

• Question 91:

  White, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination. She did not find fraud, but. in White's opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence of fraud. Under the ACFE Code of Professional Ethics. White may include her opinion on the controls in her report to management

  A. True
  B. False
  A. True

• Question 92:

  Which of the following theories suggests that, when considering the possibility of violating a law. people are likely to ask themselves. "What would my family and friends think if they find out?

  A. Cognitive theory
  B. Social control theory
  C. Behavioral theory
  D. Routine activities theory
  B. Social control theory

• Question 93:

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

  A. True
  B. False
  A. True

• Question 94:

  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
  C. Internal control

• Question 95:

  In a company with all of the following parties, who should have primary responsibility for the oversight of the organization s compliance program?

  A. The board of directors
  B. General counsel
  C. Internal audit
  D. The chief ethics officer
  A. The board of directors

• Question 96:

  Which of the following is NOT considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics? )

  A. Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
  B. Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner's ownership interest is disclosed
  C. Undertaking engagements for both sides in a case of an alleged product substitution scheme
  D. Accepting an assignment to secretly infiltrate the fraud examiner s employing organization and transmit inside information to another party
  C. Undertaking engagements for both sides in a case of an alleged product substitution scheme

• Question 97:

  Fraud risks related lo corruption include all of the following EXCEPT

  A. Espionage by competitor
  B. Aiding and abetting vendor fraud
  C. Payment of bribes
  D. Receipt of kickbacks
  D. Receipt of kickbacks

• Question 98:

  Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

  A. Professional skepticism involves maintaining a mindset that no fraud has occurred
  B. Fraud examiners should not relax their skeptical attitudes even if there are no signs of fraudulent activity.
  C. Fraud examiners should form the engagement hypothesis without regard to the available preliminary information
  D. Professional skepticism means beginning all assignments with the belief that something is amiss
  D. Professional skepticism means beginning all assignments with the belief that something is amiss

• Question 99:

  In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.

  A. True
  B. False
  A. True

• Question 100:

  Which of the following is TRUE regarding the communication of the fraud risk assessment process?

  A. The communication should be in the form of a personalized message from the assessment sponsor
  B. The communication should actively encourage employees to participate in the assessment process
  C. The communication should be visibly disseminated throughout the business
  D. All of the above
  D. All of the above