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

• Question 61:

  Which of the following is TRUE regarding the reporting of the fraud risk assessment results7

  A. A fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified

  B. The fraud risk assessment report should be delivered in a style most suited to the language of the business

  C. The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding

  D. All of the above

  Correct Answer: D

• Question 62:

  The International Organization of Securities Commissions' (IOSCO) Principles for Auditor Oversight states that auditor oversight should involve a regular review process designed to ascertain whether audit firms adhere to quality control policies and procedures.

  A. True

  B. False

  Correct Answer: A

• Question 63:

  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

  Correct Answer: D

• Question 64:

  Which of the following statements is FALSE?

  A. Controls do little good in preventing theft and fraud if those at risk do not know of their presence

  B. Most experts agree that it is harder to detect frauds than to prevent them

  C. Conducting covert audits is among the most effective fraud prevention methods

  D. Educating employees about company hotlines and reporting programs increases their perception of detection

  Correct Answer: A

• Question 65:

  Which of the following is NOT a way that an organization's fraud risk assessment should be incorporated into the audit process''

  A. It should be used to replace the auditor's own identification and assessment of fraud risks.

  B. It should be used to assess whether there is a moderate-to-high risk of management override of internal controls within the moderate-to-high fraud risk areas

  C. It should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.

  D. It should be used to design audit tests to evaluate whether the controls are operating effectively

  Correct Answer: A

• Question 66:

  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

  Correct Answer: C

• Question 67:

  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

  Correct Answer: C

• Question 68:

  According to Diane Vaughan. which of the following factors increases an organization s inherent inclination toward committing crime?

  A. Management links employee performance goals with company performance goals

  B. Rewards are given to employees who challenge the status quo

  C. Management seeks out diversity in attitudes and perspectives when hiring employees

  D. All of the above

  Correct Answer: B

• Question 69:

  White, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination. She did not find fraud, but. in White's opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence of fraud. Under the ACFE Code of Professional Ethics. White may include her opinion on the controls in her report to management

  A. True

  B. False

  Correct Answer: A

• Question 70:

  According to the differential reinforcement theory, behavior is weakened when positive rewards are gained or punishment is avoided

  A. True

  B. False

  Correct Answer: A