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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:

1. Which of the following statements is MOST ACCURATE regarding an effective system of anti- fraud controls?

A) It fully eliminates the risk of fraud by removing opportunities for misbehavior.
B) It deters fraudsters by increasing the perception that fraud will be detected.
C) It focuses more on preventive controls than detective controls.
D) It prioritizes implementing detective controls over preventive controls.

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

A) A code offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.
B) A code provides answers to all ethical dilemmas that the organization's members might encounter.
C) A code acts as a substitute for legal and regulatory requirements that apply to the profession.
D) A code facilitates practical enforcement and internal discipline throughout a profession.

3. Glenda. an internal auditor, and Brldgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies. Glenda has just been told that she will be the lead on the company's fraud risk assessment. During the fraud risk assessment. Glenda should:

A) Automatically designate the accounts receivable department as a high-risk area.
B) Confront Bridgette about the disagreements and discuss how they increase the department's risk of fraud.
C) Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department.
D) Have someone else perform the fraud risk assessment work related to the accounts receivable department's activities.

4. Which of the following factors increases an organization's inherent inclination toward committing crime according to Diane Vaughan's research?

A) Management rewards employees who challenge how the company functions.
B) Management encourages employee loyalty through social functions.
C) Management seeks diversity in attitudes and perspectives when hiring employees.
D) Management separates employee performance goals from company performance goals.

5. Which of the following components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance refers to an organization's ability to continually assess how well its enterprise risk management (ERM) capabilities and practices have increased value over time and how they will continue to drive value for the organization?

A) Review and revision
B) Strategy and objective-setting
C) Risk tolerance
D) Governance and culture

Solutions: