ACFE CFE-Fraud-Prevention-and-Deterrence Exam Practice Test Instant Access

Question 1

[Fraud Deterrence]

Christopher is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While conducting his audit procedures, he discovers evidence of a fraud involving Jeffrey, the company's chief executive officer. Which of the following is Christopher's BEST response to these findings?

AChristopher should immediately report his findings to the relevant government authority.

BChristopher should report his findings to those charged with governance of the organization.

CChristopher should confront Jeffrey with his audit findings and try to get a confession.

DChristopher should not disclose his findings to any other parties due to legal liability.

Answer : B

Question 2

[Corporate Governance]

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?

AForensic accountants

BManagement

CThe compliance function

DInternal auditors

Answer : B

Question 3

[Fraud Risk Management]

According to International Organization for Standardization (ISO) 31000:2018, an organization's risk management program should be proportionate to the organization's specific operations and objectives.

ATrue

BFalse

Answer : A

Question 4

[Ethical Responsibilities of the Fraud Examiner]

Which of the following is NOT explicitly prohibited by the ACFE Code of Professional Ethics?

AActing in a way that could be deemed unethical by the industry

BDrawing conclusions based upon evidence

CParticipating in an activity where there is an undisclosed conflict of interest

DEngaging in behavior that is against the law

Answer : B

Question 5

[Criminology and Ethics]

Which of the following is TRUE regarding prosecutions of white-collar criminals?

AOnly a small percentage of perpetrators are punished when an organization deals with a fraud case internally.

BMost fraud cases are only handled internally and are not referred to law enforcement for prosecution

CThe primary reason organizations decline to prosecute fraud cases is a belief that their internal discipline methods are sufficient

DWhen fraud cases are handled internally, an employee is more likely to be suspended or put on probation than to be terminated for their crime.

Answer : B

Question 6

[Ethical Responsibilities of the Fraud Examiner]

Which of the following statements regarding recommended vendor due diligence procedures is MOST ACCURATE?

AAn organization should subject vendors to an internal audit conducted by the organization's own auditors before agreeing to do business with them.

BAn organization should avoid revealing that it is seeking information about potential vendors prior to starting a relationship with them.

CAn organization should request that new vendors fill out a questionnaire about their background immediately after signing a contract with them.

DAn organization should include a clause in the contract requiring the vendor to report any misconduct before entering into an agreement with them.

Answer : D

Question 7

[Fraud Prevention]

A professional organization's code of conduct serves which of the following purposes?

AA code offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.

BA code acts as a substitute for legal and regulatory requirements that apply to the profession.

CA code provides answers to all ethical dilemmas that the organization's members might encounter.

DA code facilitates practical enforcement and internal discipline throughout a profession.

Answer : D

ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence CFE-Fraud-Prevention-and-Deterrence Exam Practice Test