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

1. Beezie, a Certified Fraud Examiner (CFE), took an introductory class in computer forensics.
When a client thought there might be evidence of a crime on their computer, Beezie decided to conduct a forensic examination of the computer even though she had no experience or advanced training in this area. Which of the following is TRUE regarding Beezie's conduct?

A) Beezie's conduct would be a violation of the ACFE Code of Professional Ethics.
B) Beezie's conduct would be a violation of the ACFE Code of Professional Ethics only if she also violated the law.
C) Beezie's conduct would be a violation of the ACFE Code of Professional Ethics only if she did not find the fraudster.
D) Beezie's conduct would not be a violation of the ACFE Code of Professional Ethics.

2. Rhys, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination at Marvel Company. His examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently, Marvel's management asked Rhys to state in his 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. Which of the following is TRUE regarding the ACFE Code of Professional Ethics in this situation?

A) 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.
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 the company has liability insurance to cover an incorrect assertion.
D) The ACFE Code of Professional Ethics absolutely prohibits Rhys from complying with management's request.

3. Which of the following statements regarding monitoring employees for warning signs of fraud is MOST ACCURATE?

A) An increase in employee wealth is always a sign of fraud that should be investigated.
B) Employees should be made aware that management is watching for unexplained lifestyle and behavioral changes that might indicate fraudulent conduct.
C) Managers should be instructed that it is a violation of employee privacy rights to monitor employees for behaviors that are indicative of fraud.
D) Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.

4. Benjamin, a Certified Fraud Examiner CFE, was contacted regarding an engagement to investigate a complex money laundering case spanning numerous international jurisdictions and involving different types of technologies. Benjamin had previously attended a seminar on investigating money laundering schemes, but he had no other training or experience. However, he accepted the engagement and chose to conduct the work himself. Which of the following is TRUE regarding Benjamin's conduct?

A) Benjamin's conduct would not be a violation of the ACFE Code of Professional Ethics.
B) Benjamin's conduct would be a violation of the ACFE Code of Professional Ethics.
C) Benjamin's conduct would be a violation of the ACFE Code of Professional Ethics only if he also violated applicable banking regulations.
D) Benjamin's conduct would be a violation of the ACFE Code of Professional Ethics only if he failed to find evidence of fraud.

5. According to criminologist Charles McCaghy, which of the following is the most compelling factor behind deviance by organizations?

A) Unethical corporate culture
B) Profit pressure
C) Executive failures
D) Excessive regulatory requirements

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