ACFE CFE-Fraud-Prevention

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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

Question #1
Adan, an internal auditor who works at BKY Co., is reviewing the auditing procedures for his company. He is specifically considering the ways BKY can proactively audit for fraud. Which of the following is TRUE regarding the use of proactive fraud auditing procedures at BKY?

A. Fraud assessment questioning techniques are most effectively used as part of the normal audit process.
B. Analytical review of BKY's financial statements is the best way to uncover small frauds that might be missed by other detection methods.
C. Fraud audit procedures should be designed to avoid an element of surprise.
D. Auditors should avoid asking questions such as, "Has anyone ever asked you to do something unethical?" as part of their audits, as this can limit employees' willingness to communicate.

Question #2
Which of the following Is NOT considered a conflict of Interest that Is prohibited under the ACFE Code of Professional Ethics?

A. Accepting an assignment to secretly infiltrate the fraud examiner's employing organization and transmit inside information to another party
B. Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
C. Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner's ownership interest is disclosed
D. Undertaking engagements for both sides in a case of an alleged product substitution scheme

Question #3
According to Diane Vaughan. which of the following factors increases an organization's inherent inclination toward committing crime?

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

Question #4
Management at Alpha Company is developing a corporate compliance program. To ensure that the program will be effective, management should both incentivize employees for their compliance and discipline them for any violations.

A. False
B. True

Question #5
Jody has been working at ABC Corp. for ten years. He steals funds from the company and tells himself that the company owes it to him for his "unrewarded hard work and loyalty" This situation BEST illustrates which leg of the Fraud Triangle?

A. Perceived opportunity
B. Perceived non-shareable financial need
C. Lack of personal Integrity
D. Rationalization

Solutions: