Practice Free CFE Fraud Prevention and Deterrence Exam Online Questions
Which of the following statements about the fraud risk assessment process Is MOST ACCURATE?
- A . The fraud risk assessment can be effectively conducted by people inside or outside of the organization.
- B . To ensure the independence of the team members, a fraud risk assessment must be conducted by a consultant or other external party.
- C . If the individuals conducting the fraud risk assessment truly believe that fraud could not happen at the organization, then the assessment process should reflect that belief.
- D . The fraud risk assessment is most effective when management’s influence on the process is limited
Which of the following is NOT one of the three general approaches used to control corporate crime?
- A . Strong intervention of the government
- B . Voluntary changes in corporate attitudes and structure
- C . Consumer action to force change
- D . Media blacklisting of the organization
Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?
- A . Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.
- B . Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company’s cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.
- C . Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor’s office to provide the client’s file. Susan complied with the court order, even though she did not have the client’s authorization to do so.
- D . All of the above are violations
Charles, the chief executive officer (CEO) of the Baking & Things Corporation, hired Daniela, a Certified Fraud Examiner (CFE), to investigate an embezzlement case. During the investigation, Daniela learns that Charles is involved in an unrelated fraud.
What action should Daniela take based on the ACFE Code of Professional Ethics?
- A . Daniela should immediately resign from the engagement.
- B . Daniela should report Charles to law enforcement.
- C . Daniela should contact the media to report what she found.
- D . Daniela should tell the company’s board of directors about Charles.
According to Silk and Vogel’s research, business leaders rationalize legal violations by asserting that compliance with government regulations is too costly and cuts too heavily into company profits.
- A . True
- B . False
Which of the following Is TRUE regarding the reporting of the fraud risk assessment results?
- A . The fraud risk assessment report should be delivered in a style most suited to the language of the business
- B . The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding
- C . A fraud risk assessment report should reflect the assessment team’s subjective perspective regarding the risks identified
- D . All of the above
A
Explanation:
While it’s important to thoroughly document all findings and provide a detailed review of the assessment, the final report should be communicated in a way that’s most suited to the business language. This ensures that the report’s contents are understood by all stakeholders, and can be acted upon effectively. The report should objectively present the identified risks and be clear and concise to facilitate understanding and decision-making. It should not reflect the assessment team’s subjective perspective (Option C), as this could introduce bias and reduce the usefulness of the report.
According to ACFE research, which of the following is TRUE regarding the three major categories of occupational fraud?
- A . Identity theft is both the most common and costliest category of occupational fraud.
- B . Asset misappropriation schemes are the most common category of occupational fraud.
- C . Corruption schemes are the costliest category of occupational fraud.
- D . Financial statement fraud schemes are the most common category of occupational fraud.
The findings in the 2020 Report to the Nations include which of the following?
- A . The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is complaints about management.
- B . Mote occupational frauds are committed by men than by women
- C . The median losses caused by executives are lower than those caused by staff-level employees
- D . The majority of fraudsters have been previously punished by an employer for a fraud-related offense
While, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination She did not find fraud, but. In White’s opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence of fraud Under the ACFE Code of Professional Ethics. White may include her opinion on the controls in her report to management.
- A . True
- B . False