ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence - CFE-Fraud-Prevention-and-Deterrence Exam Practice Test

A. General counsel

B. Fraud examiners

C. Management

D. Human resources

A. Government regulations are justified because the additional costs of regulations and bureaucratic procedures increase government profits.

B. Violations are caused by economic necessity and protect employees from losing their jobs.

C. The damage caused by corporate violations involving large sums of money is limited to the industry leaders who can afford the loss.

D. Compliance with government regulations does not offer benefits to the public.

A. Assess the significance of each inherent fraud risk to the organization.

B. Solicit stakeholder input to quantify the organization's greatest fraud risks and total fraud losses.

C. Determine the ideal number of fraud response protocols that the organization should implement.

D. Identify and reward the people and departments that are least likely to commit fraud.

A. Prioritization of desires for personal gain over the interests of clients

B. Ability to conceal errors to preserve the reliability of the work performed

C. Avoidance of differences of opinion on all material matters

D. Independence of mental attitude and avoidance of conflicts of interest

A. Undertaking engagements for both sides in a case of an alleged product substitution scheme

B. Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner ' s ownership interest is disclosed

C. Undertaking an engagement that decreases the fraud examiner ' s ability to perform their duties for their full-time employer

D. Accepting an assignment to secretly infiltrate the fraud examiner ' s employing organization and transmit inside information to another party

A. Aaron should remain alert for fraud but does not need to consider the potential for abuse or other misconduct during the audit engagement.

B. Aaron likely does not have the ability to withdraw from the engagement, even if fraud is identified during the audit.

C. Aaron does not need to comply with the requirements found in International Standard on Auditing 240, as they do not apply to the engagement.

D. Aaron's audit objectives are likely narrower than those of a private-sector financial statement audit.

A. The ACFE Code of Professional Ethics absolutely prohibits Rhys from complying with management ' s request.

B. The ACFE Code of Professional Ethics allows Rhys to comply with management ' s request without limitations.

C. The ACFE Code of Professional Ethics allows Rhys to comply with management ' s request only if he can find another CFE to co-sign his report.

D. The ACFE Code of Professional Ethics allows Rhys to comply with management ' s request only if the company has liability insurance to cover an incorrect assertion.

A. Organizations should emphasize that rules regarding whistleblower protections are only intended for lower level employees who might be more vulnerable to retaliation.

B. Organizations should publicize their whistleblower procedures internally but should avoid communicating any procedural information to parties outside of the organization.

C. Organizations should implement a clear whistleblower policy that lists out every type of misconduct that has ever been reported at the company.

D. Organizations should establish formal consequences that are to be imposed upon employees at the company who retaliate against a whistleblower.

A. Collusion between contractors.

B. Adding ghost employees to payroll.

C. Reporting revenue in the wrong period.

D. Embezzling customer payments.

A. Elena should work independently to correct the internal control deficiencies.

B. Elena should report the findings in writing to the appropriate law enforcement agencies.

C. Elena should suspend the audit and begin a new audit focused on the internal controls.

D. Elena should provide a written communication about the findings to those charged with governance.

A. Financial pressure.

B. Rationalization.

C. Integrity lapse.

D. Opportunity.

A. A retail manager works with a friend to commit a scheme involving fraudulent product returns.

B. An inventory manager takes home the company's products to sell privately.

C. A commercial director agrees with other businesses in the same industry to raise prices.

D. A senior accountant uses company funds to pay for personal credit card charges.

A. Anonymous feedback mechanisms

B. Focus groups

C. Surveys

D. Interviews