ACFE CFE-Fraud-Prevention-and-Deterrence Exam Questions Instant Access

Question 1

[Fraud Risk Management]

Green, a Certified Fraud Examiner (CFE). had an ethical dilemma regarding her business contract with her professional partners. Which of the following sources of guidance would be considered the lowest level of reference to help Green in determining the most ethical course of action?

AContract law

BGuidance from her family and friends

CThe ACFE Code of Professional Ethics

DPhilosophical principles related to ethics

Answer : B

Question 2

[Fraud Deterrence]

Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?

AISA 240 requires auditors to effectively raise awareness about the risk of fraud within the audited organization.

BISA 240 establishes standards regarding the auditor's responsibility to consider fraud in an audit of financial statements.

CISA 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization.

DISA 240 creates requirements for management regarding the establishment of a holistic fraud risk management program.

Answer : B

Question 3

[Fraud Risk Management]

Luis, the internal audit manager for Oak Corporation, is working to formally incorporate the company's fraud risk assessment into its audit process. Which of the following is NOT a way that Oak's audit team should use the fraud risk assessment process and results as part of their audits?

ATo inform the development of audit programs for areas that have been identified as having a high risk of fraud.

BTo confirm whether there is conclusive evidence that fraud is occurring within the company.

CTo validate whether the organization is appropriately managing moderate-to-high fraud risks.

DTo design audit tests to evaluate whether fraud risk controls are operating effectively.

Answer : B

Question 4

[White-Collar Crime]

Criminologist Charles McCaghy has stated that regulatory pressure is the single most compelling factor behind deviance by organizations.

ATrue

BFalse

Answer : A

Question 5

[Fraud Risk Management]

Which of the following criminological theories asserts that the three elements that have the most influence on crime are the availability of suitable targets, absence of capable guardians, and presence of motivated offenders?

ARational choice theory

BDifferential association theory

CRoutine activities theory

DSocial control theory

Answer : C

Question 6

[Ethical Responsibilities of the Fraud Examiner]

Stevens, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination at ABC Company. His examination did not reveal any conclusive evidence that fraud had occurred orwas occurring. Consequently, ABC's management asked Stevens to state in his official examination report that the organization is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. Under the ACFE Code of Professional Ethics. Stevens is permitted to comply with management's request based on the findings of his examination.

ATrue

BFalse

Answer : B

Question 7

[Fraud Risk Management]

Which of the following is TRUE regarding a background check policy for employees?

AWhen verifying past employment, management should only ask previous employers to verify the candidate's previous position and dates of employment.

BIf a background check was conducted on an employee at the time of hire, then there is no need for management to conduct additional background checks on that employee during their employment.

CAs part of the screening process, management should contact the personal and professional references provided by the job candidate only if they are unsure whether the candidate is being honest.

DManagement should perform a background check on any candidate who will have access to cash, checks, credit card numbers, or other items that are easily stolen.

Answer : D

ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence CFE-Fraud-Prevention-and-Deterrence Exam Questions