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

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

• Question 21:

  In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss This response is known as:

  A. Mitigating the risk
  B. Assuming the risk
  C. Avoiding the risk
  D. Transferring the risk
  D. Transferring the risk

• Question 22:

  Which of the following is an example of organizational crime?

  A. doctor conspiring with patients to file false health care insurance claims
  B. A salesman offering bribes to secure a contract
  C. An accounting clerk forging company checks to herself
  D. Management of several construction companies engaging in bid rigging
  C. An accounting clerk forging company checks to herself

• Question 23:

  Which of the following is FALSE regarding the discussion about the financial statements susceptibility to fraud that auditors are required to have under International Standard on Auditing (ISA) 240?

  A. A The audit team should discuss how management could conceal fraud
  B. B. The audit team should consider factors that provide the opportunity for fraud.
  C. The audit team should focus solely on how the company's assets could be misappropriated
  D. The audit team should consider whether the organizational culture might enable the rationalization of fraud
  D. The audit team should consider whether the organizational culture might enable the rationalization of fraud

• Question 24:

  Jane, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination at XYZ Company. Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently. XYZ's management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management's request

  A. True
  B. False
  B. False

• Question 25:

  Which of the following is NOT included in the five fraud risk management principles described

  A. Communicating the expectations of those governing the fraud risk management program
  B. Deploying preventive and detective fraud control activities to mitigate fraud risk
  C. Performing comprehensive fraud risk assessments to identify specific fraud schemes
  D. Developing one-time evaluations for each fraud risk management principle
  D. Developing one-time evaluations for each fraud risk management principle

• Question 26:

  Sofia, a Certified Fraud Examiner (CFE). look an introductory class in computer forensics When a client thought there might be evidence of a crime on his hard drive. Sofia decided to conduct a forensic examination of the hard drive even though she had no experience or advanced training in this area Sofia's conduct would likely be a violation of the ACFE Code of Professional Ethics

  A. True
  B. False
  A. True

• Question 27:

  Which of the following statements regarding white-collar defendants is TRUE?

  A. The lower the offenders' social status, the more likely they are to be imprisoned
  B. They are more likely to be fined than to face prison terms as punishment
  C. They are less likely to insist on a trial than other offenders
  D. All of the above
  B. They are more likely to be fined than to face prison terms as punishment

• Question 28:

  According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:

  A. The continued pressures of a culture that rewards affluence and success
  B. The economy's increased reliance on credit
  C. The decrease in funds available from government assistance programs
  D. The increased opportunity for wrongdoing as a result of advancing information technologies
  D. The increased opportunity for wrongdoing as a result of advancing information technologies

• Question 29:

  A report by a fraud examiner is privileged from disclosure by anyone other than the client

  A. True
  B. False
  A. True

• Question 30:

  In identifying the inherent fraud risks that could apply to the organization the fraud risk assessment team should discuss

  A. The possibility of management override of controls
  B. Risks to the organization's reputation
  C. The organization's incentive programs
  D. All of the above
  D. All of the above