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

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

A) Overseeing management's actions to manage fraud risks
B) Establishing and maintaining effective anti-fraud controls at a reasonable cost
C) Evaluating indicators of fraud and deciding whether any further action is necessary or whether an investigation should be recommended
D) Obtaining reasonable assurance that the organization's financial statements are free of material misstatements caused by fraud

2. "Crimes of the Middle Classes" finds that all the following factors have contributed to the rising problem of economic crime EXCEPT:

A) Advancement of information technologies increasing the opportunity for misconduct.
B) The increase in funds available from government assistance programs.
C) The economy's decreased reliance on credit and a decline in personal debt.
D) Media sources sending the message that no one has to settle for second best.

3. The differential reinforcement theory asserts that behavior is strengthened when ________ is/are applied.

A) Repeated warnings
B) Negative stimuli
C) Punishment
D) Positive reinforcement

4. Which of the following Is NOT a way that an organization's fraud risk assessment should be Incorporated Into the audit process?

A) It should be used to replace the auditor's own identification and assessment of fraud risks.
B) it should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.
C) It should be used to design audit tests to evaluate whether the controls are operating effectively.
D) It should be used to assess whether there is a moderate-to-high risk of management overriding controls within the moderate-to-high fraud risk areas.

5. Which of the following is NOT a factor that directors and management should consider when developing a corporate governance framework for an organization?

A) The organization's ethical environment
B) The ability of the framework to remain static during changes in the corporate landscape
C) The legal and regulatory environment in which the organization operates
D) The organization's cultural environment

Solutions: