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

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

• Question 81:

  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
  D. All of the above

• Question 82:

  Blue, a Certified Fraud Examiner (CFE). had an ethical dilemma regarding the contract governing one of his professional engagements. Which of the following sources of guidance would be considered the lowest level of reference to help Blue in determining the most ethical course of action?

  A. Contract law
  B. The handling of similar situations by individuals he respects
  C. Moral philosophical principles
  D. The ACFE Code of Professional Ethics
  B. The handling of similar situations by individuals he respects

• Question 83:

  Glenda. an internal auditor, and Bridgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies Glenda has just been told that she will be the lead on the company s fraud risk assessment. During the fraud risk assessment. Glenda should:

  A. Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department
  B. Automatically designate the accounts receivable department as a high-risk area
  C. Confront Bridgette about the disagreements and discuss how they increase the departments risk of fraud
  D. Have someone else perform the fraud risk assessment work related to the accounts receivable departments activities
  C. Confront Bridgette about the disagreements and discuss how they increase the departments risk of fraud

• Question 84:

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

• Question 85:

  Which of the following principles of corporate governance pertains to the duty of the organization to act in the best interest of society?

  A. Responsibility
  B. Fairness
  C. Transparency
  D. Accountability
  B. Fairness

• Question 86:

  International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization

  A. True
  B. False
  B. False

• Question 87:

  Criminologist Charles McCaghy has slated that profit pressure is the single most compelling factor behind deviance by organizations

  A. True
  B. False
  A. True

• Question 88:

  According to Silk and Vogel's research, business leaders rationalize legal violations by asserting that the damage done by the violations is diffused among a large number of parties.

  A. True
  B. False
  A. True

• Question 89:

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

• Question 90:

  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
  A. True