Pass Your ACFE Exam with CFE-Fraud-Prevention-and-Deterrence Exam Dumps (Updated 140 Questions)
CFE-Fraud-Prevention-and-Deterrence Exam Dumps - ACFE Practice Test Questions
NEW QUESTION # 50
Independent auditors play a critical role in enhancing the reliability of financial information by financial position and performance in compliance with accepted accounting standards.
- A. True
- B. False
Answer: A
NEW QUESTION # 51
The objectives of a fraud risk management program include
- A. Punishing fraud perpetrators
- B. Proactively identifying fraud risks
- C. All of the above
- D. Limiting the damage caused by fraud occurrences
Answer: C
NEW QUESTION # 52
Which of the following theories suggests that, when considering the possibility of violating a law. people are likely to ask themselves. "What will my spouse think if they find out?"
- A. Social control theory
- B. Operant theory
- C. Cognitive theory
- D. Behavioral theory
Answer: A
NEW QUESTION # 53
Gray, an independent Certified Fraud Examiner (CFE). was hired by Green president of the ABC Corporation, to investigate allegations that one oi ABC s employees is taking kickbacks. During the investigation. Gray learns that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:
- A. Tell the company's board of directors about Green
- B. Resign from the engagement
- C. Not disclose the information about Green.
- D. Report Green to law enforcement.
Answer: D
NEW QUESTION # 54
The theory of differential association is used frequently to explain white-collar criminality Which of the following is NOT one of the assertions or principles of differential association?
- A. Criminal behavior is learned from other people in a process of communication
- B. Criminal behavior is learned using the same mechanisms as other learning
- C. The process of learning criminal behavior Is the same as pure imitation
- D. Criminal behavior is acquired through participation with intimate personal groups
Answer: D
NEW QUESTION # 55
Which of the following is FALSE regarding a fraud risk assessment?
- A. The assessment should be used to improve employee fraud awareness
- B. The designation of an area as high risk should only occur if the assessment has conclusively revealed that fraud is occurring there.
- C. The objective of the assessment is to help the organization identify what makes it most vulnerable to fraud.
- D. The assessment team should consider how employees behave as part of its assessment
Answer: B
NEW QUESTION # 56
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. All of the above
- B. Create an environment in which employees feel safe challenging management's decisions
- C. Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
- D. implement two separate sets of ethics policies, one for management and one for employees
Answer: B
NEW QUESTION # 57
According to Diane Vaughan. which of the following factors increases an organization s inherent inclination toward committing crime?
- A. Management links employee performance goals with company performance goals
- B. All of the above
- C. Rewards are given to employees who challenge the status quo
- D. Management seeks out diversity in attitudes and perspectives when hiring employees
Answer: C
NEW QUESTION # 58
Which of the following is TRUE regarding an organization s ethics program?
- A. To be most effective, access to the organization s ethics policy should be restricted to employees and other internal parties only
- B. All of the above
- C. An effective written ethics policy alone is sufficient to communicate managements ethical philosophy and serve as a comprehensive ethics program
- D. In designing the ethics program, management should consider whether the organization currently has any ethical leadership issues
Answer: B
NEW QUESTION # 59
In the context of fraud examination, integrity requires all of the following EXCEPT:
- A. Subordination of desires for personal gain to the interests of clients, employers, and the public
- B. Independence of mental attitude
- C. An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong
- D. Avoidance of differences of opinion
Answer: D
NEW QUESTION # 60
Which of the following is FALSE regarding fraud examiners responsibilities under the ACFE Code of Professional Ethics?
- A. In determining what information to include in a fraud examination report, fraud examiners should try to decide what users will consider important and material
- B. If fraud examiners become aware of a situation that might appear to others as though they have a conflict of interest they should immediately disclose the situation to company management
- C. Fraud examiners must obtain and document evidence in a manner that ensures that the chain of custody is preserved
- D. Confidential information provided to fraud examiners by their clients is considered privileged and therefore legally exempt from disclosure in all circumstances
Answer: A
NEW QUESTION # 61
Which of the following would most likely be a violation of the ACFE Code of Professional Ethics?
- A. Stephanie, a CFE. accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.
- B. Green, a CFE. uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.
- C. Susan, a CFE was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file Susan complied with the court order, even though she did not have the client's authorization to do so
- D. All of the above are violations
Answer: A
NEW QUESTION # 62
Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treactway Commission's (COSO) Enterprise Risk Management-Integrating with Strategy and Performance?
- A. Review and revision
- B. Risk tolerance
- C. Compliance
- D. Event avoidance
Answer: B
NEW QUESTION # 63
Jody has been working at ABC Corp. for ten years. He steals funds from the company and tells himself that the company owes it to him for his "unrewarded hard work and loyalty" This situation BEST illustrates which leg of the Fraud Triangle?
- A. Perceived non-shareable financial need
- B. Perceived opportunity
- C. Lack of personal Integrity
- D. Rationalization
Answer: D
NEW QUESTION # 64
Which of the following is FALSE regarding a background check policy for employees?
- A. At a minimum, management should conduct a background check on any candidate who will have constant access to cash, checks, and credit card numbers, or other easily stolen items.
- B. When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.
- C. As part of the screening process, management should contact the references provided by the job candidate.
- D. Where permitted by law, management should run a background check on any existing employee who is being promoted to a position that includes access to sensitive or valuable company resources, even if a background check was run on the individual at the time of hire
Answer: B
NEW QUESTION # 65
For its compliance program to be effective, an organization must promote the program through appropriate incentives for compliance.
- A. True
- B. False
Answer: A
NEW QUESTION # 66
Professional auditing standards suggest that auditors incorporate an "element of predictability" in the selection of auditing procedures to be performed so that they ensure the same areas are tested in the same manner during each audit.
- A. False
- B. True
Answer: A
NEW QUESTION # 67
Which of the following is NOT considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics? )
- A. 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
- B. Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
- C. Undertaking engagements for both sides in a case of an alleged product substitution scheme
- D. Accepting an assignment to secretly infiltrate the fraud examiner s employing organization and transmit inside information to another party
Answer: C
NEW QUESTION # 68
The internal auditor's fraud-related responsibilities include which of the following?
- A. Overseeing management's actions to manage fraud risks
- B. Attesting that the organization's financial statements are free of material misstatements caused by fraud
- C. Reporting to regulators regarding the entity's vulnerability to fraud
- D. Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program
Answer: D
NEW QUESTION # 69
A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?
- A. In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.
- B. The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.
- C. The objectives of the audit are likely narrower than those of a private-sector financial statement audit.
- D. The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement
Answer: A
NEW QUESTION # 70
Jenny is a highly respected employee at XYZ Corp. Her husband's gambling addiction has caused them to have a significant amount of debt. Jenny begins stealing money from the company to cover her husband's gambling losses. This situation best illustrates which leg of the Fraud Triangle?
- A. Perceived non-shareable financial need
- B. Perceived opportunity
- C. Perceived acquiescence
- D. Rationalization
Answer: D
NEW QUESTION # 71
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