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

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

• Question 11:

  The fact that most groups within groups a society have the same ideas of right and wrong greatly assists in the ability to determine the correct ethical decision in a given situation.

  A. True
  B. False
  B. False

• Question 12:

  Consistently punishing perpetrators can be an effective fraud prevention mechanism.

  A. True
  B. False
  B. False

• Question 13:

  For its compliance program lo be effective, an organization must perform procedures to ensure management hires only ethical individuals who exercise a substantial measure of discretion in acting on the organization s behalf.

  A. True
  B. False
  A. True

• Question 14:

  Which of the following is FALSE regarding a fraud risk assessment?

  A. The designation of an area as being high risk does not conclusively mean that fraud is occurring there
  B. The objective of the assessment is to provide an estimate of the organization s fraud losses
  C. The assessment should be used to improve employee fraud awareness
  D. The assessment team should consider how employees behave as part of its assessment
  B. The objective of the assessment is to provide an estimate of the organization s fraud losses

• Question 15:

  According to the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control--Integrated Framework (the Framework), there are five interrelated components of a company's internal control. Which of the following is NOT among these five components?

  A. Ethical culture
  B. Risk assessment
  C. Control activities
  D. Monitoring
  A. Ethical culture

• Question 16:

  Effective risk management involves balancing which of the following?

  A. The organization s internal controls and its financial goals
  B. The organization s financial reporting model and its risk tolerance
  C. The organization s regulatory requirements and its available resources
  D. The organization s risk appetite and its ability to meet its objectives
  C. The organization s regulatory requirements and its available resources

• Question 17:

  Which of the following is NOT a purpose served by a professional organization s code of conduct?

  A. It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles
  B. It serves as a reference and benchmark for ethical guidance
  C. It provides clear answers to all ethical dilemmas the organization s members might face
  D. It facilitates practical enforcement and profession-wide internal discipline
  B. It serves as a reference and benchmark for ethical guidance

• Question 18:

  Which of the following is FALSE regarding G20/OECD Principles of Corporate Governance (the Principles)?

  A. The Principles state that an entity's corporate governance framework should ensure the equitable treatment of all shareholders
  B. The Principles state that an entity's corporate governance framework should encourage active cooperation between corporationfiand stakeholders in creating wealth.
  C. The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them
  D. The Principles are intended to be applicable in both developed economies and emerging markets
  D. The Principles are intended to be applicable in both developed economies and emerging markets

• Question 19:

  Which of the following is TRUE regarding an organization s ethics program?

  A. To be most effective, access to the organization s ethics policy should be restricted to employees and other internal parties only
  B. In designing the ethics program, management should consider whether the organization currently has any ethical leadership issues
  C. An effective written ethics policy alone is sufficient to communicate managements ethical philosophy and serve as a comprehensive ethics program
  D. All of the above
  D. All of the above

• Question 20:

  Which of the following would most likely be a violation of the ACFE Code of Professional Ethics?

  A. Susan, a CFE was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file Susan complied with the court order, even though she did not have the client's authorization to do so
  B. Green, a CFE. uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.
  C. Stephanie, a CFE. accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.
  D. All of the above are violations
  C. Stephanie, a CFE. accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.