Practice Free CFE Fraud Prevention and Deterrence Exam Online Questions
For its compliance program to be effective, an organization must promote the program through appropriate incentives for compliance.
- A . True
- B . False
According to behaviorists such as B. F. Skinner, which of the following scenarios is MOST LIKELY to occur when an undesired behavior is punished?
- A . The behavior will return when punishment ceases
- B . The behavior will be permanently suppressed
- C . The behavior will occur more frequently.
- D . The behavior will not be affected by the punishment
At the end of an engagement, a Certified Fraud Examiner (CFE) might provide a report to their client about the information uncovered during the investigation.
Which of the following statements is TRUE regarding the potential privilege that applies to this report?
- A . A fraud examiner’s report is considered privileged information and is therefore protected from being legally demanded by outside parties.
- B . A fraud examiner’s report may be privileged from disclosure in certain circumstances, but it does not have an absolute legal privilege.
- C . A fraud examiner’s report is privileged from disclosure by anyone other than the client.
- D . A fraud examiner’s report is only privileged from disclosure if the author is also a professional legal advisor.
Sycamore, Inc. has a simple organizational structure with few specialized departments. The structure of Sycamore, Inc. increases the likelihood that fraud will go undetected within the organization.
- A . True
- B . False
A
Explanation:
The White-Collar Crime discussion on organizational structure explains that structural characteristics can affect how likely wrongdoing is to occur and remain undetected. In simple organizations with fewer specialized departments and less differentiation, there are generally fewer independent checks, fewer distinct perspectives, and less separation among functions. This can make it easier for misconduct to remain hidden because fewer people are positioned to identify irregularities or challenge suspicious activity. By contrast, greater specialization can sometimes make concealment more difficult because unusual conduct may be more visible to those with relevant expertise. The manual also repeatedly links effective controls and oversight to fraud detection. Consistent with that reasoning, a simple structure with few specialized departments can increase the likelihood that fraud will go undetected. Therefore, the statement is true.
Beezie, a Certified Fraud Examiner (CFE), took an introductory class in computer forensics. When a client thought there might be evidence of a crime on their computer, Beezie decided to conduct a forensic examination of the computer even though she had no experience or advanced training in this area.
Which of the following is TRUE regarding Beezie’s conduct?
- A . Beezie’s conduct would be a violation of the ACFE Code of Professional Ethics.
- B . Beezie’s conduct would not be a violation of the ACFE Code of Professional Ethics.
- C . Beezie’s conduct would be a violation of the ACFE Code of Professional Ethics only if she also violated the law.
- D . Beezie’s conduct would be a violation of the ACFE Code of Professional Ethics only if she did not find the fraudster.
According to the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Internal Control-integrated Framework (the Framework), there are five interrelated components of a company’s internal control.
Which of the following is NOT among these five components?
- A . Monitoring
- B . Control environment
- C . Independent oversight
- D . Information and communication
Which of the following is an example of organizational crime?
- A . A salesman offering bribes to secure a contract
- B . An accounting clerk forging company checks to herself
- C . A doctor conspiring with patients to Tile false health care insurance claims
- D . Management of several construction companies engaging In bid rigging
Consistently punishing perpetrators can be an effective fraud prevention mechanism
- A . True
- B . False
Aqua Corp.’s board of directors is meeting to discuss fraud risk management within the organization.
Which of the following activities is among the board of directors’ primary responsibilities related to fraud risk management for the company?
- A . Overseeing the organization’s fraud risk management activities.
- B . Monitoring and proactively improving the fraud risk management program.
- C . Performing and regularly updating the fraud risk assessment.
- D . Implementing the fraud risk management program throughout the organization.
Which of the following criminological theories states that individuals make a conscious decision to commit a crime and that crime can be deterred by reducing opportunities for criminal activity and increasing an individual’s personal risk of being caught and punished?
- A . Routine activities theory
- B . Differential association theory
- C . Rational choice theory
- D . Social conflict theory