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

1. Which of the following statements is MOST ACCURATE regarding an organization's fraud risk management program?

A) Systems to monitor and identify breaches in compliance must be included in the fraud risk management program.
B) All employees at the organization should be responsible for monitoring compliance with the program.
C) Punishment for intentional noncompliance should be individualized based on the offender's personal circumstances.
D) Formal sanctions for intentional noncompliance should be kept private and only shared if a party absolutely needs to know.

2. Based on research regarding the criminogenic nature of organizations, employees with strong personal values and ethics will always disobey a superior's direct order to engage in fraudulent behavior, despite an inherent desire to obey authority figures.

A) Flase
B) True

3. Alicia, a government auditor, is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions. Which of the following is TRUE regarding Alicia's consideration of fraud during this engagement?

A) In conducting the audit, Alicia's objectives are likely narrower than those of a private-sector financial statement audit.
B) If Alicia identifies fraud during the audit engagement, she must immediately withdraw from the engagement.
C) Alicia should focus on potential fraud and does not need to consider the possibility of abuse or other misconduct during the audit engagement.
D) Alicia must comply with the requirements found in International Standard on Auditing 240 as they apply to both private- and public-sector audits.

4. According to ACFE research, which of the following is TRUE?

A) Most employees who commit occupational fraud are first-time offenders.
B) Men and women commit similar amounts of occupational frauds.
C) Complaints about family problems is the most reported behavioral red flag displayed by fraud perpetrators.
D) Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.

5. Which of the following Is TRUE regarding an organization's ethics program?

A) An effective written ethics policy alone is sufficient to communicate management's ethical philosophy and serve as a comprehensive ethics program
B) To be most effective, access to the organization's ethics policy should be restricted to employees and other Internal parties only
C) All of the above
D) In designing the ethics program, management should consider whether the organization currently has any ethical leadership Issues

Solutions: