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

1. According to Diane Vaughan. which of the following factors increases an organization's inherent inclination toward committing crime?

A) Management encourages employee loyalty through social functions
B) Management separates employee performance goals from company performance goals
C) Rewards are given to employees who challenge the status quo
D) All of the above

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

A) Derrick, a CFE, was hired by a client to conduct a fraud examination but found nothing abnormal.
A year later, he received a court order to provide the client's file to the court. Derrick complied with the court order despite not having the client's authorization to provide the file.
B) Riva, a CFE, uncovered material internal control deficiencies that were material but unrelated to the kickback scheme she was investigating. In her final report to management, Riva included information about the deficiencies despite their being unrelated to the situation she was hired to investigate.
C) Dee, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she rushed to complete the investigation, she overlooked key items of evidence and failed to uncover a fraud scheme.
D) All of the above are violations.

3. Fraud risks related to corruption include:

A) Espionage by competitors
B) Reporting revenue in the wrong accounting period
C) Fraudulent customer payments
D) Payment of bribes to procure business

4. Timothy, a new Certified Fraud Examiner (CFE), has been tasked with his first fraud examination engagement. To exercise appropriate professional skepticism as he conducts the engagement, Timothy should:

A) Maintain a skeptical attitude throughout the entire engagement even if the evidence shows no signs of fraudulent activity.
B) Begin the engagement with the belief that no fraud has occurred.
C) Form the engagement hypothesis without consideration for the nature of the assignment.
D) Maintain professional skepticism that can only be dispelled by evidence.

5. ABC. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that ABC is subject to?

A) ABC is required to comply with G20/OECD Principles of Corporate Governance
B) ABC must comply with specific listing standards for the stock exchange(s) on which it is listed
C) ABC is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.
D) ABC is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions

Solutions: