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

1. Gian is a manager at Ram Co. and is tasked with building the company's fraud risk management program. As a starting point, Gian wants to formally define the program's objectives. Which of the following is TRUE regarding the process of defining the objectives of the fraud risk management program?

A) Gian should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented them.
B) Gian must assign both a quantitative and qualitative measure to the company's risk appetite to accurately measure the program's effectiveness.
C) When expressing the organization's risk appetite, Gian should do so without regard to the company's culture or operations.
D) Gian must ensure that the company's investment in the fraud risk management program outweighs the benefit of those controls.

2. Which of the following is the MOST EFFECTIVE way for management to respond to incidents of fraud within an organization?

A) Maintaining a policy that allows employees one warning before they are terminated for committing fraud
B) Emphasizing to all employees that the company maintains a policy of zero tolerance for fraud.
C) Punishing frauds only if they have a significant financial impact.
D) Keeping all known incidents of fraud private to protect the identities of parties involved.

3. A professional organization's code of conduct serves which of the following purposes?

A) A code offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.
B) A code facilitates practical enforcement and internal discipline throughout a profession.
C) A code provides answers to all ethical dilemmas that the organization's members might encounter.
D) A code acts as a substitute for legal and regulatory requirements that apply to the profession.

4. Maria, a Certified Fraud Examiner (CFE), is conducting a fraud risk assessment for a company where her brother serves as the Chief Financial Officer. Maria believes she can remain impartial.
What should she do?

A) Continue the assessment because no actual fraud has been identified
B) Disclose the relationship and remove herself from the engagement if independence could reasonably be questioned
C) Continue the assessment but avoid reviewing financial controls
D) Continue the assessment if the board verbally approves

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

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

Solutions: