Practice Free CFE Fraud Prevention and Deterrence Exam Online Questions
Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?
- A . They state that a corporate governance framework should promote transparent and fair markets and the efficient allocation of resources.
- B . They assert that a corporate governance framework should ensure that the treatment of shareholders differs based on the class of stock they own.
- C . They are intended to be applicable in emerging markets but not in developed economies.
- D . They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.
The theory of differential association is used frequently lo explain white-collar criminality.
Which of the following is NOT one of the assertions or principles of differential association?
- A . Criminal behavior is explained by an individual’s general needs and values.
- B . Criminal behavior is acquired through participation with intimate personal groups.
- C . Criminal behavior is learned from other people in a process of communication.
- D . Criminal behavior is learned using the same mechanisms as other learning
Which of the following is included in the G20/OECD Principles of Corporate Governance?
- A . A requirement for a corporate governance framework that protects the exercise of management’s rights.
- B . Support for the equal treatment of all members of an organization’s governing body.
- C . A request that governments implement effective internal controls to support good corporate governance practices.
- D . An emphasis on the importance of timely, accurate and transparent disclosure mechanisms.
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 . To avoid legal problems in discharging employees, the anti-fraud policy should not include any specific examples of frau and misconduct.
- C . In developing the anti-fraud policy, management should check with legal counsel regarding any legal considerations with respect to the policy.
- D . One of the most important considerations in developing the anti-fraud policy is to ensure every allegation is handled in a uniform manner.
Fraud risks related to corruption include:
- A . Reporting revenue in the wrong accounting period
- B . Fraudulent customer payments
- C . Espionage by competitors
- D . Payment of bribes to procure business
Which of the following is a TRUE statement regarding the role of a well-designed organizational structure as part of an anti-fraud program?
- A . A confused organizational structure makes it harder for a fraudster to perpetrate and conceal their misdeeds.
- B . Effectively documenting and communicating the organizational structure to all employees can help prevent fraud.
- C . Formally establishing and communicating the proper flow of information in an organization can hinder its fraud prevention initiatives.
- D . Displaying organizational and departmental hierarchies can help fraudsters select their targets.
Which of the following is a best practice to ensure a successful fraud reporting program?
- A . The company should communicate that fraud, waste, and abuse are more likely to occur in large organizations than small ones.
- B . The company should require employees with information about potential fraud to report it directly and only to their immediate supervisor.
- C . Employees are held accountable for reporting tips that are not able to be substantiated
- D . Employees should be informed that, to the extent possible, their names will not be disclosed.
Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?
- A . Guidance regarding appropriate board structures, responsibilities, and procedures
- B . Support for establishing stronger protection for foreign shareholders than for domestic shareholders
- C . A request that governments have in place an appropriate framework to support good corporate governance practices
- D . Recognition of the importance of the role of stakeholders in corporate governance
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 . Publicly call out and criticize employees whose cash drawers are over or short.
- C . Take away an hour of paid time off for each time the drawer is over or short
- D . Demote employees who continue to have reconciliation discrepancies
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