The Secret Of ACFE CFE-Fraud-Prevention-and-Deterrence Samples

NEW QUESTION 1
Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?

• A. Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program s effectiveness
• B. Management should express risk appetite in a manner that is appropriate for and unique to the organization s culture and operations.
• C. Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented them.
• D. Management must consider the total amount of fraud risk it is willing to accept when determining fraud risk management objectives

Answer: D

NEW QUESTION 2
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.

Answer: B

NEW QUESTION 3
Which of the following is NOT included in the five fraud risk management principles described

• A. Communicating the expectations of those governing the fraud risk management program
• B. Deploying preventive and detective fraud control activities to mitigate fraud risk
• C. Performing comprehensive fraud risk assessments to identify specific fraud schemes
• D. Developing one-time evaluations for each fraud risk management principle

Answer: D

NEW QUESTION 4
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

Answer: B

NEW QUESTION 5
Employees should be kepi unaware that management is watching for lifestyle and behavior changes in staff members that might indicate fraud

• A. True
• B. False

Answer: A

NEW QUESTION 6
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.

Answer: B

NEW QUESTION 7
In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss This response is known as:

• A. Mitigating the risk
• B. Assuming the risk
• C. Avoiding the risk
• D. Transferring the risk

Answer: D

NEW QUESTION 8
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

Answer: C

NEW QUESTION 9
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

Answer: A

NEW QUESTION 10
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

Answer: C

NEW QUESTION 11
In developing a corporate governance framework for an organization, directors and management must consider which of the following?

• A. The organization s cultural environment
• B. The organization s legal and regulatory environment
• C. The organization s ethical environment
• D. All of the above

Answer: D

NEW QUESTION 12
Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?

• A. Establishing well-defined job descriptions to facilitate performance evaluations
• B. Evaluating employee performance based solely on productivity and profit
• C. Tying employee compensation to reasonable organizational performance goals
• D. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks

Answer: B

NEW QUESTION 13
The theory of differential association is used frequently to explain white-collar criminality Which of the following is NOT one of the assertions or principles of differential association?

• A. Criminal behavior is learned from other people in a process of communication
• B. Criminal behavior is learned using the same mechanisms as other learning
• C. Criminal behavior is acquired through participation with intimate personal groups
• D. The process of learning criminal behavior Is the same as pure imitation

Answer: C

NEW QUESTION 14
According to G20/OECD Principles of Corporate Governance (the Principles):

• A. Governments should have in place a corporate governance framework that promotes transparent and fair markets
• B. Companies should disclose all financial information to investors, regardless of the cost burden of the disclosure
• C. A corporate governance framework should focus on the rights of shareholders but does not need to include the rights of other organizational stakeholders
• D. All of the above

Answer: A

NEW QUESTION 15
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

Answer: D

NEW QUESTION 16
In the context of fraud examination, integrity requires all of the following EXCEPT:

• A. Subordination of desires for personal gain to the interests of clients, employers, and the public
• B. Avoidance of differences of opinion
• C. Independence of mental attitude
• D. An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong

Answer: B

NEW QUESTION 17
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