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

1. Reputational damage is an indirect cost of fraud that can be difficult for organizations to calculate.

A) True
B) False

2. According to ACFE research, which of the following is TRUE regarding prosecutions of white- collar criminals?

A) Most fraud cases are only handled internally and are not referred to law enforcement for prosecution.
B) The primary reason that organizations decline to prosecute fraud cases is a lack of evidence.
C) Only a small percentage of perpetrators are punished when an organization handles a fraud case internally.
D) The most common internal response to a substantiated fraud case is to terminate the employee.

3. Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?

A) ISA 240 establishes auditors as being primarily responsible for implementing anti-fraud internal controls within an organization.
B) ISA 240 provides guidance regarding the auditor's responsibility to consider fraud in an audit of financial statements.
C) ISA 240 creates requirements for the board of directors regarding the establishment of a holistic fraud risk management program.
D) ISA 240 requires auditors to effectively educate the staff about the risk of fraud within the audited organization.

4. Which of the following BEST reduces the risk of collusion among employees?

A) Independent monitoring and surprise reviews
B) Relying solely on segregation of duties
C) Eliminating internal audits
D) Reducing management oversight

5. Green, a Certified Fraud Examiner (CFE). had an ethical dilemma regarding her business contract with her professional partners. Which of the following sources of guidance would be considered the lowest level of reference to help Green in determining the most ethical course of action?

A) The ACFE Code of Professional Ethics
B) Guidance from her family and friends
C) Contract law
D) Philosophical principles related to ethics

Solutions: