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

1. According to Steve Albrecht's research,______is the most common personal characteristic motivating fraudsters, and ________ is the most common organization-environment factor motivating fraudsters.

A) High personal debt; lack of separation of duties
B) Living beyond their means, too much trust in key employees
C) Desire for recognition, lack of separation of duties
D) Revenge: too much trust in key employees

2. Which of the following Is TRUE regarding the reporting of the fraud risk assessment results?

A) The fraud risk assessment report should be delivered in a style most suited to the language of the business
B) The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding
C) All of the above
D) A fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified

3. Which of the following Is one of the recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

A) Give shareholders oversight of hotline reporting programs
B) Have adequate compensation committee resources and authority
C) Have a mandatory independent audit committee
D) Develop a written charter for management

4. Jane, a Certified Fraud Examiner (CFE), was hired lo conduct a fraud examination at XYZ Company Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring Consequently. XYZ's management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management's request.

A) False
B) True

5. Which of the following is TRUE regarding an organization's ethics program?

A) An ethics program should avoid addressing rewards for ethical behavior and sanctions for unethical behavior
B) Having a written ethics policy is sufficient to communicate management's ethical philosophy and serve as a comprehensive ethics program
C) To be most effective, access to the organization's ethics policy should be restricted to external parties such as vendors and customers
D) In designing the ethics program, management should consider how stakeholders throughout the organization define success

Solutions: