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

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

• Question 51:

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

• Question 52:

  According to G20/OECD Principles of Corporate Governance (the Principles):

  A. Governments should have in place a corporate governance framework that promotes transparent and fair markets
  B. Companies should disclose all financial information to investors, regardless of the cost burden of the disclosure
  C. A corporate governance framework should focus on the rights of shareholders but does not need to include the rights of other organizational stakeholders
  D. All of the above
  A. Governments should have in place a corporate governance framework that promotes transparent and fair markets

• Question 53:

  In developing a corporate governance framework for an organization, directors and management must consider which of the following?

  A. The organization s cultural environment
  B. The organization s legal and regulatory environment
  C. The organization s ethical environment
  D. All of the above
  D. All of the above

• Question 54:

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

• Question 55:

  Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treactway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance?

  A. Event avoidance
  B. Compliance
  C. Risk tolerance
  D. Review and revision
  C. Risk tolerance

• Question 56:

  To be in compliance with the ACFE Code of Professional Ethics, fraud examiners must have:

  A. A Sufficient skill and knowledge to recognize when additional training or expert guidance is required
  B. An expert level of experience for every circumstance that might be encountered in a fraud examination
  C. An expert level of knowledge for every circumstance that might be encountered in a fraud examination
  D. Sufficient resources to obtain the training needed to become an expert on all facets of fraud examinations
  D. Sufficient resources to obtain the training needed to become an expert on all facets of fraud examinations

• Question 57:

  Maria conducted a fraud examination that led to a valid confession of guilt from Rita. In Maria's verbal report to her superiors, she stated that, in her opinion. "Rita is guilty of embezzlement." Maria has just violated the ACFE Code of Professional Ethics.

  A. True
  B. False
  B. False

• Question 58:

  The generation and use of relevant, quality information to support the functioning of internal control is a principle related to which component of the Committee of Sponsoring Organizations of the Treadway Commissions (COSO) Internal Control--Integrated Framework (the Framework)?

  A. Risk assessment
  B. Control environment
  C. Monitoring
  D. Information and communication
  A. Risk assessment

• Question 59:

  Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?

  A. Establishing well-defined job descriptions to facilitate performance evaluations
  B. Evaluating employee performance based solely on productivity and profit
  C. Tying employee compensation to reasonable organizational performance goals
  D. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks
  B. Evaluating employee performance based solely on productivity and profit

• Question 60:

  According to behaviorists such as B F Skinner, which of the following scenarios is mostly likely to occur when an undesired behavior is punished?

  A. The behavior will be permanently suppressed
  B. The behavior will return when punishment ceases
  C. The behavior will occur more frequently.
  D. The behavior will not be affected by the punishment
  A. The behavior will be permanently suppressed