Practice Free CFE Fraud Prevention and Deterrence Exam Online Questions
Management at Alpha Company is developing a corporate compliance program. To ensure that the program will be effective, management should both incentivize employees for their compliance and discipline them for any violations.
- A . True
- B . False
A professional organization’s code of conduct serves which of the following purposes?
- A . It functions as a reference and benchmark for ethical guidance.
- B . It offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.
- C . It acts as a substitute for legal and regulatory requirements that apply to the profession.
- D . It replaces the need for individuals to consult their own principles.
Which of the following is a best practice when assembling a fraud risk assessment team?
- A . Team members should all have similar skills and perspectives.
- B . The size of the team should be limited to four individuals.
- C . The team should include only external sources.
- D . Team members should have experience in eliciting information.
As part of its anti-fraud program, Elm Company is outlining the responsibilities of different stakeholders.
Who is ultimately responsible for ensuring the effectiveness of the organization’s anti-fraud program?
- A . Forensic accountants
- B . Management
- C . The compliance function
- D . Internal auditors
To address an employee’s consistent failure to meet deadlines, a manager removes the employee’s ability to work from home.
This is an example of what type of behavioral response?
- A . Positive reinforcement
- B . Negative reinforcement
- C . Punishment
- D . None of the above
Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?
- A . They assert that a corporate governance framework should ensure the equitable treatment of all the organization’s shareholders.
- B . They are intended to be applicable in developed economies but not in emerging markets.
- C . They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.
- D . They state that a corporate governance framework should require disclosure of all financial information to the organization’s investors.
Risk management is focused on balancing the organization’s___________with Its____________.
- A . Internal controls; financial reporting model
- B . Regulatory requirements, risk appetite
- C . Objectives; resources
- D . Risk appetite, ability to meet its objectives
The availability of suitable targets, absence of capable guardians, and presence of motivated offenders are the three most important elements that influence crime according to which of the following criminological theories?
- A . Conditioning theory
- B . Routine activities theory
- C . Rational choice theory
- D . Social control theory
According to Diane Vaughan, which of the following factors increases an organization’s inherent inclination toward committing crime?
- A . Management seeks out diversity in attitudes and perspectives when hiring employees
- B . Rewards are given to employees who challenge the status quo
- C . Management links employee performance goals with company performance goals
- D . All of the above
Which of the following statements is MOST ACCURATE regarding an organization’s fraud risk management program?
- A . Formal sanctions for intentional noncompliance should be kept private and only shared if a party absolutely needs to know.
- B . All employees at the organization should be responsible for monitoring compliance with the program.
- C . Punishment for intentional noncompliance should be individualized based on the offender’s personal circumstances.
- D . Systems to monitor and identify breaches in compliance must be included in the fraud risk management program.