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

1. Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

A) Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file.
Susan complied with the court order, even though she did not have the client's authorization to do so.
B) Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.
C) All of the above are violations
D) Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.

2. In the context of a fraud examination, integrity requires all of the following EXCEPT:

A) Trustworthiness
B) Avoidance of conflicts of interest
C) Refusal to admit errors
D) A well-developed sense of moral philosophy

3. Which of the following statements regarding monitoring employees for warning signs of fraud is MOST ACCURATE?

A) Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.
B) Managers should be instructed that it is a violation of employee privacy rights to monitor employees for behaviors that are indicative of fraud.
C) Employees should be made aware that management is watching for unexplained lifestyle and behavioral changes that might indicate fraudulent conduct.
D) An increase in employee wealth is always a sign of fraud that should be investigated.

4. Which of the following is LEAST LIKELY to be a factor that directors and management should consider when developing a corporate governance framework for an organization?

A) The organization's physical operating environment
B) The organization's legal and regulatory environment
C) The organization's cultural environment
D) The organization's ethical environment

5. Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?

A) Management should tailor the detailed objectives of the fraud risk management program to the organization's specific needs and goals.
B) Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented tnem.
C) Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program's effectiveness.
D) Management must balance the investment in anti-fraud controls with the benefit of those controls and the amount of risk it is willing to accept.

Solutions: