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

• Question 71:

  Which of the following is NOT one of the three general approaches used to control corporate crime?

  A. Consumer action to force change

  B. Voluntary changes in corporate attitudes and structure

  C. Media blacklisting of the organization

  D. Strong intervention of the government

  Correct Answer: B

• Question 72:

  In identifying the inherent fraud risks that could apply to the organization the fraud risk assessment team should discuss

  A. The possibility of management override of controls

  B. Risks to the organization's reputation

  C. The organization's incentive programs

  D. All of the above

  Correct Answer: D

• Question 73:

  Professional auditing standards suggest that auditors incorporate an "element of predictability" in the selection of auditing procedures to be performed so that they ensure the same areas are tested in the same manner during each audit.

  A. True

  B. False

  Correct Answer: A

• Question 74:

  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

  Correct Answer: A

• Question 75:

  Which of the following is FALSE regarding corporate governance'

  A. Effective corporate governance practices are most necessary in an organization in which the owners are not also the individuals responsible for setting and executing the business strategy

  B. Effective corporate governance practices are considered to be the foundation of fraud risk management.

  C. Corporate governances primary purpose is to ensure the accuracy of the organizations financial reports

  D. An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization

  Correct Answer: A

• Question 76:

  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

  Correct Answer: D

• Question 77:

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

  A. The designation of an area as being high risk does not conclusively mean that fraud is occurring there

  B. The objective of the assessment is to provide an estimate of the organization s fraud losses

  C. The assessment should be used to improve employee fraud awareness

  D. The assessment team should consider how employees behave as part of its assessment

  Correct Answer: B

• Question 78:

  An effective system of internal controls:

  A. Decreases the perception that fraud will be detected

  B. Focuses more on detective controls than preventive controls

  C. Focuses more on preventive controls than detective controls

  D. Does not completely eliminate the risk of fraud

  Correct Answer: C

• Question 79:

  Which of the following theories suggests that, when considering the possibility of violating a law. people are likely to ask themselves. "What would my family and friends think if they find out?

  A. Cognitive theory

  B. Social control theory

  C. Behavioral theory

  D. Routine activities theory

  Correct Answer: B

• Question 80:

  Which of the following is FALSE regarding corporate governance'

  A. Effective corporate governance practices are most necessary in an organization in which the owners are not also the individuals responsible for setting and executing the business strategy

  B. Effective corporate governance practices are considered to be the foundation of fraud risk management.

  C. Corporate governances primary purpose is to ensure the accuracy of the organization's financial reports

  D. An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization.

  Correct Answer: D