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

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

• Question 31:

  According to International Organization for Standardization (ISO) 31000 2018. an organization's risk management program should be proportionate to the organization s specific operations and objectives.

  A. True
  B. False
  A. True

• Question 32:

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

• Question 33:

  The findings of the 2018 Report to the Nations include all of the following EXCEPT:

  A. More occupational frauds are committed by women than by men.
  B. The majority of employees who commit occupational fraud are first-lime offenders.
  C. The median losses caused by executives are higher than those caused by staff-level employees
  D. The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is living beyond their means
  C. The median losses caused by executives are higher than those caused by staff-level employees

• Question 34:

  The theory of differential association is used frequently to explain white-collar criminality Which of the following is NOT one of the assertions or principles of differential association?

  A. Criminal behavior is learned from other people in a process of communication
  B. Criminal behavior is learned using the same mechanisms as other learning
  C. Criminal behavior is acquired through participation with intimate personal groups
  D. The process of learning criminal behavior Is the same as pure imitation
  C. Criminal behavior is acquired through participation with intimate personal groups

• Question 35:

  A corporation can generally be held criminally responsible for criminal acts committed by its employees even if those in management had no knowledge of or participation in the underlying events.

  A. True
  B. False
  A. True

• Question 36:

  Which of the following is FALSE regarding corporate governance'

  A. Effective corporate governance practices are most necessary in an organization in which the owners are not also the individuals responsible for setting and executing the business strategy
  B. Effective corporate governance practices are considered to be the foundation of fraud risk management.
  C. Corporate governances primary purpose is to ensure the accuracy of the organizations financial reports
  D. An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization
  A. Effective corporate governance practices are most necessary in an organization in which the owners are not also the individuals responsible for setting and executing the business strategy

• Question 37:

  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
  B. Avoidance of differences of opinion

• Question 38:

  Which of the following statements about the fraud risk assessment process is MOST ACCURATE"?

  A. To ensure the independence of the team members a fraud risk assessment must be conducted by a consultant or other external party.
  B. The assessment team must be perceived as independent and objective by others for the assessment to be effective
  C. If the individuals conducting the fraud risk assessment truly believe that fraud could not happen at the organization the assessment process should reflect that belief.
  D. The fraud risk assessment is most effective when management s influence on the process is limited.
  A. To ensure the independence of the team members a fraud risk assessment must be conducted by a consultant or other external party.

• Question 39:

  Independent auditors play a critical role in enhancing the reliability of financial information by financial position and performance in compliance with accepted accounting standards.

  A. True
  B. False
  A. True

• Question 40:

  An effective system of internal controls:

  A. Decreases the perception that fraud will be detected
  B. Focuses more on detective controls than preventive controls
  C. Focuses more on preventive controls than detective controls
  D. Does not completely eliminate the risk of fraud
  C. Focuses more on preventive controls than detective controls