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

1. For Its compliance program to be effective, an organization must perform procedures to ensure management hires only ethical Individuals who exercise a substantial measure of discretion In acting on the organization's behalf

A) True
B) False

2. During a fraud risk assessment, a manager argues that fraud risks should only be evaluated based on historical fraud incidents. What is the BEST response?

A) Focus exclusively on areas with prior losses
B) Agree because past fraud is the strongest predictor of future fraud
C) Exclude hypothetical fraud scenarios
D) Evaluate both existing and potential fraud risks, including risks not previously observed

3. Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To MOST EFFECTIVELY reinforce an anti-fraud culture, management should:

A) Create an environment in which employees are dissuaded from challenging management's decisions
B) All of the above
C) Visibly adhere to the same set of ethics policies that is required of all employees
D) Use a checklist of initiatives to make sure all the elements of a strong tone at the lop are in place

4. A fraud examiner discovers evidence suggesting possible misconduct by a senior executive. The examiner's supervisor instructs him to stop investigating and destroy his working papers. What should the examiner do?

A) Destroy the working papers after documenting the request
B) Preserve the evidence and act in accordance with professional and legal obligations
C) Follow instructions because management has authority over the investigation
D) Ignore the evidence because it involves senior management

5. Management at ABC Company wants to transfer one of the risks identified during the company's fraud risk assessment process. Which of the following actions would be MOST APPROPRIATE to support this response?

A) Discontinuing the underlying activity completely
B) Implementing additional preventive and detective controls
C) Deciding not to implement any responsive measures
D) Purchasing fidelity insurance to protect against the associated risk of loss

Solutions: