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

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

• Question 61:

  The Institute of Internal Auditors' (IIA) International Standards for the Professional Practice of Internal Auditing states that

  A. The internal auditor must apply the skill and care of an expert whose primary responsibility is investigating fraud
  B. The internal auditor must apply the skill and care of an expert whose primary responsibility is detecting fraud.
  C. The internal auditor must apply the skill and care of an unbiased, infallible audit professional.
  D. The internal auditor must apply the skill and care of a reasonably prudent and competent internal auditor
  C. The internal auditor must apply the skill and care of an unbiased, infallible audit professional.

• Question 62:

  Jenny is a highly respected employee at XYZ Corp Her husbands gambling addiction has caused them to have a significant amount of debt Jenny begins stealing money from the company to cover her husbands gambling losses. This situation best illustrates which leg of the Fraud Triangle?

  A. Perceived opportunity
  B. Rationalization
  C. Perceived non-shareable financial need
  D. Perceived acquiescence
  C. Perceived non-shareable financial need

• Question 63:

  Julia is conducting a formal assessment of XYZ Corporation s ethical culture To which of the five components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control--Integrated Framework (the Framework) does her assessment pertain?

  A. Control environment
  B. Monitoring
  C. Control activities
  D. Information and communication
  A. Control environment

• Question 64:

  According to the 2018 Report to the Nations.___________schemes are the most common form of occupational fraud, while_________schemes are the costliest form of occupational fraud

  A. Financial statement fraud, corruption
  B. Asset misappropriation; financial statement fraud
  C. Asset misappropriation; corruption D. Corruption; asset misappropriation
  C. Asset misappropriation; corruption D. Corruption; asset misappropriation

• Question 65:

  According to the 2018 Report to the Nations, which of the following is the most common method by which frauds are detected?

  A. Confession
  B. External audit
  C. Tips
  D. Internal audit
  C. Tips

• Question 66:

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

• Question 67:

  Which of the following is FALSE regarding the fraud risk assessment team?

  A. The team members should have experience in gathering and eliciting information
  B. The team size should be limited to a maximum of three individuals.
  C. The team members might include both internal and external sources
  D. The team should consist of individuals with diverse knowledge, skills, and perspectives.
  B. The team size should be limited to a maximum of three individuals.

• Question 68:

  Which of the following best describes the purpose of The National Commission on Fraudulent Financial Reporting (the Treadway Commission)?

  A. Studying the effect of the threat of vicarious liability on the behavior of corporate executives
  B. Designing a model corporate compliance program
  C. Defining the responsibility of the auditor in preventing and detecting fraud
  D. Determining the specific requirements of the Principles of Risk Management
  C. Defining the responsibility of the auditor in preventing and detecting fraud

• Question 69:

  The Public Interest Oversight Board (PIOB) is the global body responsible for establishing international corporate governance standards.

  A. True
  B. False
  B. False

• Question 70:

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

  A. True
  B. False
  A. True