ACFE Certified Fraud Examiner CFE-FRAUD-PREVENTION-AND-DETERRENCE Questions & Answers

• Question 31:

  During a fraud risk assessment, (he assessment (earn is seeking information on the ethical tone set by upper and middle managers The team members determine that, for this task, they would like to get candid one-on-one feedback from employees away from their peers. Which of the following techniques would be most helpful for them to use in gathering this information?

  A. Surveys

  B. Anonymous feedback mechanisms

  C. Interviews

  D. Focus groups

  Correct Answer: B

• Question 32:

  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

  Correct Answer: B

• Question 33:

  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.

  Correct Answer: B

• Question 34:

  Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the most effective way for Smith to encourage his team members to keep their cash drawers in balance?

  A. Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.

  B. Take away an hour of paid time off for each time the drawer is over or short.

  C. Publicly call out and criticize employees whose cash drawers are over or short

  D. Demote employees who continue to have reconciliation discrepancies

  Correct Answer: A

• Question 35:

  In the context of fraud examination, integrity requires all of the following EXCEPT:

  A. Subordination of desires for personal gain to the interests of clients, employers, and the public

  B. Avoidance of differences of opinion

  C. Independence of mental attitude

  D. An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong

  Correct Answer: B

• Question 36:

  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

  Correct Answer: D

• Question 37:

  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

  Correct Answer: C

• Question 38:

  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

  Correct Answer: D

• Question 39:

  According to modern criminological studies, which of the following is the determinant aspect of white-collar crime'?

  A. Organizational opportunity

  B. Absence of risk factors

  C. Potential legal punishment

  D. Social status

  Correct Answer: D

• Question 40:

  Which of the following is FALSE regarding a background check policy for employees'7

  A. Where permitted by law. management should run a background check on any existing employee who is being promoted to a position that includes access to sensitive or valuable company resources, even if a background check was run on the individual at the time of hire

  B. When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.

  C. As part of the screening process, management should contact the references provided by the job

  candidate

  D. At a minimum, management should conduct a background check on any candidate who will have constant access to cash, checks, and credit card numbers, or other easily stolen items.

  Correct Answer: B