ACFE CFE-Fraud-Prevention : Certified Fraud Examiner - Fraud Prevention and Deterrence Exam

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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. A company's anti-fraud controls are well designed, but management rarely enforces them and routinely ignores policy violations. Which statement is MOST accurate?

A) The controls automatically compensate for management behavior
B) Fraud risk remains low because the controls exist
C) Fraud risk increases because control enforcement is weak
D) Fraud risk depends only on employee ethics

2. Which of the following is a responsibility of an organization's board of directors?

A) Directing employees to organize and execute business activities.
B) Electing the company shareholders and supervising their decisions and actions.
C) Serving as the intermediary between staff-level employees and management.
D) Assessing the strategy and underlying purpose of management's decisions and actions.

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

A) Provide adequate resources and authority to the internal audit function
B) Have a mandatory independent finance committee
C) Develop a written charter for the audit committee
D) Assign oversight of the hotline reporting program to company shareholders

4. Employee anti-fraud education should:

A) Be restricted to formal educational mechanisms to reinforce the importance of the message.
B) Include descriptions of the procedures that management uses to detect fraud.
C) Include examples of prior employee misconduct and how those situations were handled.
D) Be presented by organizational executives or anti-fraud professionals only.

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

A) ISA 240 establishes standards regarding the auditor's responsibility to consider fraud in an audit of financial statements.
B) ISA 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization.
C) ISA 240 requires auditors to effectively raise awareness about the risk of fraud within the audited organization.
D) ISA 240 creates requirements for management regarding the establishment of a holistic fraud risk management program.

Solutions: