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

A. False

B. True

A. The employee believes they are legally obligated to comply with anything their manager asks them to do as part of their job responsibilities.

B. The employee hopes to distinguish themselves from coworkers at the organization who are less willing to engage in unethical or criminal behavior.

C. The employee thinks their actions will be excused if they come forward as a whistleblower.

D. The employee feels a high degree of responsibility for the organization's success.

A. The objective of anti-fraud controls is to completely eliminate the inherent fraud risk.

B. Inherent risks are risks that remain after efforts are made to mitigate fraud risk.

C. The objective of anti-fraud controls is to reduce the residual fraud risk to a level that is significantly lower than the inherent fraud risk.

D. Residual risks are risks that are present before the effect of internal controls.

A. Analytical review of BKY ' s financial statements is the best way to uncover small frauds that might be missed by other detection methods.

B. Fraud audit procedures should be designed to avoid an element of surprise.

C. 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.

D. Fraud assessment questioning techniques are most effectively used as part of the normal audit process.

A. Including information in employee training programs about the importance of properly disposing of confidential documents is an example of a nudge.

B. To be effective, a behavioral nudge should leave full autonomy for the final decision or action within the employee's control.

C. A nudge reinforces the reasons why a specific behavior is beneficial, while a reminder makes it easier or more likely that individuals will engage in the desired behavior.

D. The goal of behavioral nudges is to remove all options other than the desired behavior from the choices available to the employee.

A. Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.

B. An increase in employee wealth is always a sign of fraud that should be investigated.

C. Managers should observe employees for signs of suspicious behavioral or lifestyle changes only if they can do so without the employees' knowledge.

D. Managers should be instructed to observe employees for any unusual lifestyle improvements, such as an unexplained increase in luxury purchases.

A. Baldwin reading the applicable contract law.

B. Baldwin contemplating philosophical principles related to ethics.

C. Baldwin asking for guidance from his family and friends.

D. Baldwin reviewing the ACFE Code of Professional Ethics.

A. Reflect the assessment team ' s subjective perspective regarding the risks identified.

B. Contain a detailed, comprehensive list of every assessment finding.

C. Focus on the findings that will make the most impact on the company ' s fraud risk management efforts.

D. Include a complete list of recommended actions for management to take to address all identified risks.

A. Evangelique must comply with the reporting requirements for all governmental auditors that are set by global auditing standards.

B. Evangelique's reporting requirements depend on the jurisdiction of the entity and the specific audit mandate.

C. Evangelique's reporting requirements are the same as those for external auditors in the private sector.

D. Evangelique is legally prohibited from reporting the findings to any party outside the organization being audited.

A. Flase

B. True

A. The internal audit function is not permitted to communicate with the board of directors about fraud because that is the responsibility of external auditors.

B. The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors to maintain independence.

C. The internal audit function should discuss with senior management and the board of directors any significant residual fraud risks.

D. The internal audit function is permitted, but not required, to periodically report about the organization's fraud risks to senior management and the board of directors.

A. Assessing the strategy and underlying purpose of management ' s decisions and actions

B. Directing employees to execute business activities

C. Acting as guardians of the organization ' s resources and assets

D. Serving as the intermediaries between shareholders and management

A. Staff at all levels of the organization should be responsible for monitoring compliance with the program.

B. Formal sanctions for intentional noncompliance should be kept private in all circumstances.

C. The program must include systems designed to identify, address, and monitor compliance violations.

D. The punishment for intentional noncompliance should be decided solely based on the perpetrator's specific circumstances.

A. The organization ' s cultural environment

B. The organization ' s physical operating environment

C. The organization ' s legal and regulatory environment

D. The organization ' s ethical environment