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

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

• Question 71:

  Gray, an independent Certified Fraud Examiner (CFE). was hired by Green president of the ABC Corporation, to investigate allegations that one oi ABC s employees is taking kickbacks. During the investigation. Gray learns that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:

  A. Tell the company's board of directors about Green
  B. Report Green to law enforcement.
  C. Resign from the engagement
  D. Not disclose the information about Green.
  B. Report Green to law enforcement.

• Question 72:

  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
  A. True

• Question 73:

  The objective of anti-fraud controls is to:

  A. Completely eliminate residual fraud risk
  B. Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk
  C. Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.
  D. Completely eliminate inherent fraud risk
  A. Completely eliminate residual fraud risk

• Question 74:

  Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

  A. A request that governments have in place an appropriate framework to support good corporate governance practices
  B. Recognition of the importance of the role of stakeholders in corporate governance
  C. Support for establishing stronger protection for foreign shareholders than for domestic shareholders
  D. Guidance regarding appropriate board structures, responsibilities, and procedures
  C. Support for establishing stronger protection for foreign shareholders than for domestic shareholders

• Question 75:

  According to International Auditing Standard (ISA) 240. the two types of intentional financial statement misstatements that are relevant to the auditor are

  A. Misstatements resulting from fraudulent financial reporting and misstatements resulting from misappropriation of assets
  B. Misstatements resulting from revenue manipulation and misstatements resulting from expense manipulation
  C. Misstatements affecting the income statement and misstatements affecting the balance sheet
  D. Immaterial misstatements and material misstatements
  C. Misstatements affecting the income statement and misstatements affecting the balance sheet

• Question 76:

  Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the most effective way for Smith to encourage his team members to keep their cash drawers in balance?

  A. Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.
  B. Take away an hour of paid time off for each time the drawer is over or short.
  C. Publicly call out and criticize employees whose cash drawers are over or short
  D. Demote employees who continue to have reconciliation discrepancies
  A. Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.

• Question 77:

  According to modern criminological studies, which of the following is the determinant aspect of white-collar crime'?

  A. Organizational opportunity
  B. Absence of risk factors
  C. Potential legal punishment
  D. Social status
  D. Social status

• Question 78:

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

• Question 79:

  Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but it allows exceptions for unknowing violations of the law

  A. True
  B. False
  B. False

• Question 80:

  Which of the following statements regarding document retention policies (DRPs) is TRUE?

  A. Document retention policies do not need to include protocols for preserving electronic documents as most IT systems automatically preserve copies of such data
  B. When establishing a document retention policy, management should consider any industry-specific rules for documenting and regaining records
  C. An effective document retention policy permits the organization to continue the destruction of documents when faced with potential litigation
  D. All of the above
  D. All of the above