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

1. Ian is drafting a report containing the results of his company's fraud risk assessment process. To be MOST EFFECTIVE, Ian's report should:

A) Reflect the assessment team's subjective perspective regarding the risks identified.
B) Contain a detailed, comprehensive list of every assessment finding.
C) Focus on the findings that will make the most impact on the company's fraud risk management efforts.
D) Include a complete list of recommended actions for management to take to address all identified risks.

2. 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) False
B) True

3. Armando has been tasked with developing policies to help prevent crime by using the threat of criminal sanctions to control the immediate behavior of individuals. Which of the following strategies to control crime is Armando using?

A) Prevention
B) Compliance
C) Deterrence
D) Enforcement

4. The internal auditor's fraud-related responsibilities include which of the following?

A) Attesting that the organization's financial statements are free of material misstatements caused by fraud
B) Overseeing management's actions to manage fraud risks
C) Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program
D) Reporting to regulators regarding the entity's vulnerability to fraud

5. In response to an employee's failure to meet performance expectations, a manager demotes the employee to a junior-level position. This is an example of what type of behavioral response?

A) None of the above
B) Negative reinforcement
C) Punishment
D) Positive reinforcement

Solutions: