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

• Question 51:

  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

  Correct Answer: A

• Question 52:

  Which of the following is FALSE regarding an organization's anti-fraud policy?

  A. A detailed anti-fraud policy can make it easier to investigate and punish employees who commit fraud and other dishonest acts.

  B. One of the most important considerations in developing the anti-fraud policy is to ensure every allegation is handled in a uniform-manner

  C. To avoid legal problems in discharging employees, the anti-fraud policy should not include any specific examples of fraud and misconduct

  D. In developing the anti-fraud policy, management should check with legal counsel regarding any legal considerations with respect to the policy

  Correct Answer: C

• Question 53:

  The internal auditor s fraud-related responsibilities include which of the following?

  A. Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program

  B. Attesting that the organization s financial statements are free of material misstatements caused by fraud

  C. Reporting to regulators regarding the entity's vulnerability to fraud

  D. Overseeing managements actions to manage fraud risks

  Correct Answer: C

• Question 54:

  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

  Correct Answer: D

• Question 55:

  During the course of a fraud examination. Stefan, an employee of Acme Inc., approaches Marten, a Certified Fraud Examiner (CFE) and fellow employee of Acme, and tells him that he knows of a major fraud being committed by the chief financial officer (CFO). However. Stefan says he can only provide details if Marten promises him absolute confidentiality. How should Marten respond?

  A. Agree that the information will be held in confidence, even though Marten knows it will not be

  B. Take Stefan's request straight to Acme Inc.'s management

  C. Tell Stefan that he will try to keep the information as confidential as possible

  D. Not agree to the request for confidentiality

  Correct Answer: C

• Question 56:

  Glenda. an internal auditor, and Bridgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies Glenda has just been told that she will be the lead on the company s fraud risk assessment. During the fraud risk assessment. Glenda should:

  A. Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department

  B. Automatically designate the accounts receivable department as a high-risk area

  C. Confront Bridgette about the disagreements and discuss how they increase the departments risk of fraud

  D. Have someone else perform the fraud risk assessment work related to the accounts receivable departments activities

  Correct Answer: C

• Question 57:

  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

  Correct Answer: D

• Question 58:

  According to The Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing, which of the following should the internal audit team evaluate in its assessment of the risk management process?

  A. The materiality of the organization s financial statements

  B. The organization s fraud risk management initiatives

  C. The management team's assessment of the internal controls over financial reporting

  D. The organization s risk exposures relating to the sale of assets

  Correct Answer: B

• Question 59:

  The existence of many specialized departments within a company generally decreases the overall risk of fraud within the organization

  A. True

  B. False

  Correct Answer: A

• Question 60:

  Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?

  A. Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program s effectiveness

  B. Management should express risk appetite in a manner that is appropriate for and unique to the organization s culture and operations.

  C. Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented them.

  D. Management must consider the total amount of fraud risk it is willing to accept when determining fraud risk management objectives

  Correct Answer: D