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

Question 1

[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 2

[Fraud Risk Management]

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.

ATrue

BFalse

Answer : A

Question 3

[Fraud Deterrence]

Patrick is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking his audit procedures, he discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Patrick's BEST response to these findings?

APatrick should confront management with his audit findings and try to get a confession.

BPatrick should immediately report his findings to local law enforcement authorities.

CPatrick should not disclose his findings to any other parties due to client confidentiality

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

Answer : D

Question 4

[White-Collar Crime]

Which of the following is an example of organizational crime?

AA sales manager using a corporate credit card for personal expenses

BManagement of several pharmaceutical companies engaging in a price fixing scheme

CAn insurance claims agent conspiring with customers to file false insurance claims and share the proceeds

DAn HR employee adding a ghost employee to the payroll and misappropriating the paychecks

Answer : B

Question 5

[Fraud Prevention]

Which of the following choices is an example of an anti-fraud control that is primarily detective in nature?

AContinuous audit techniques

BSeparation of employee duties

CEmployee background checks

DHiring policies and procedures

Answer : A

Question 6

[Ethical Responsibilities of the Fraud Examiner]

Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but It allows exceptions for unknowing violations of the law.

ATrue

BFalse

Answer : B

Question 7

[Fraud Risk Management]

Having specialized departments within a company often increases the overall risk ot traud by the organization.

ATrue

BFalse

Answer : A

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