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

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

• Question 41:

  Which of the following statements is FALSE regarding an organization's fraud risk management program1?

  A. A Formal sanctions for intentional noncompliance should be well-publicized throughout the company
  B. There should be measures in place to address failures in the design or operation of anti- fraud controls, as well as fraud occurrervces
  C. The program must include mechanisms to monitor and identify breaches in compliance
  D. The responsibility of handling suspected incidences of noncompliance should be delegated to someone outside of the company
  A. A Formal sanctions for intentional noncompliance should be well-publicized throughout the company

• Question 42:

  In response to an employee s failure to meet performance expectations. a manager demotes the employee to a junior-level position This is an example of what type of behavioral response?

  A. Negative reinforcement
  B. Punishment
  C. Positive reinforcement
  D. None of the above
  D. None of the above

• Question 43:

  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 organization's financial reports
  D. An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization.
  D. An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization.

• Question 44:

  Employee anti-fraud education should:

  A. Include examples of prior employee misconduct and how those situations were handled
  B. Include descriptions of the procedures that management uses to detect fraud.
  C. Be restricted to formal educational mechanisms to reinforce the importance of the message
  D. Be presented by organizational executives or anti-fraud professionals only
  A. Include examples of prior employee misconduct and how those situations were handled

• Question 45:

  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
  B. Anonymous feedback mechanisms

• Question 46:

  The objectives of a fraud risk management program include

  A. Proactively identifying fraud risks
  B. Limiting the damage caused by fraud occurrences
  C. Punishing fraud perpetrators
  D. All of the above
  D. All of the above

• Question 47:

  Management at ABC Corp. is assessing the company s ethical tone and how it affects the organization s fraud risk. To most effectively reinforce an anti-fraud culture, management should

  A. Create an environment in which employees feel safe challenging managements decisions
  B. Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
  C. Implement two separate sets of ethics policies one for management and one for employees
  D. All of the above
  D. All of the above

• Question 48:

  Which of the following is FALSE regarding fraud examiners responsibilities under the ACFE Code of Professional Ethics?

  A. Confidential information provided to fraud examiners by their clients is considered privileged and therefore legally exempt from disclosure in all circumstances
  B. In determining what information to include in a fraud examination report, fraud examiners should try to decide what users will consider important and material
  C. If fraud examiners become aware of a situation that might appear to others as though they have a conflict of interest they should immediately disclose the situation to company management
  D. Fraud examiners must obtain and document evidence in a manner that ensures that the chain of custody is preserved
  B. In determining what information to include in a fraud examination report, fraud examiners should try to decide what users will consider important and material

• Question 49:

  Which of the following is NOT one of the three general approaches used to control corporate crime?

  A. Consumer action to force change
  B. Voluntary changes in corporate attitudes and structure
  C. Media blacklisting of the organization
  D. Strong intervention of the government
  B. Voluntary changes in corporate attitudes and structure

• Question 50:

  Which of the following is NOT explicitly prohibited by the ACFE Code of Professional Ethics?

  A. Participating in an activity where there is an undisclosed conflict of interest
  B. Engaging in behavior that is against the law
  C. Drawing conclusions based upon evidence
  D. Acting in a way that could be deemed unethical by the industry
  C. Drawing conclusions based upon evidence