ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence - CFE-Fraud-Prevention Free Exam Questions

A. It serves as a reference and benchmark for ethical guidance

B. It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles

C. It facilitates practical enforcement and profession-wide Internal discipline.

D. It replaces the need for individuals to consult their own conscience.

A. Fraud risk depends only on employee ethics

B. The controls automatically compensate for management behavior

C. Fraud risk remains low because the controls exist

D. Fraud risk increases because control enforcement is weak

A. Internal control

B. Fraud risk management

C. Financial reporting

D. Operational risk assessment

A. Josie should report her findings to those charged with governance of the organization.

B. Josie should not disclose her findings to anyone until after she has conducted a full investigation.

C. Josie should confront Carissa with her audit findings and try to get a confession.

D. Josie should immediately report her findings to the local media.

A. Punishment

B. Positive reinforcement

C. None of the above

D. Negative reinforcement

A. False

B. True

A. The continued pressures of a culture that rewards affluence and success

B. The increased constraints of the regulatory environment for businesses

C. The increased opportunity for wrongdoing as a result of advancing information technologies

D. The economy's increased reliance on credit

A. Opportunity

B. Rationalization

C. Lack of integrity

D. Pressure

A. Document examination

B. Tips

C. Management review

D. Internal audit

A. Mae, a CFE, was hired by a client to conduct a fraud examination but found nothing unusual. A year later, she received a legal order from the local prosecutor's office to provide the client's file.
Mae complied with the court order despite not having the client's authorization to provide the file.

B. All of the above are violations.

C. Eric, a CFE, accepted a fraud examination assignment and then instructed his employee to assess the company's accounts receivable for indications of fraud. He accepted the employee's work that showed no evidence of fraud without conducting his own assessment. However, the employee missed some key information, causing Eric to fail to uncover a costly fraud scheme.

D. Grace, a CFE, uncovered internal control deficiencies that were material but unrelated to the financial statement fraud she was investigating. In her final report to management, Grace included information about the deficiencies despite their being unrelated to the situation she was hired to investigate.