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

A. Have someone else perform the fraud risk assessment work related to the purchasing function

B. Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.

C. Automatically designate the purchasing function as a high-risk area.

D. Confront Brandon about the disagreements and discuss how they increase the organization ' s risk of fraud-

A. Include descriptions of the procedures that management uses to detect fraud.

B. Be restricted to formal educational mechanisms to reinforce the importance of the message.

C. Be presented by organizational executives or anti-fraud professionals only.

D. Include examples of prior employee misconduct and how those situations were handled.

A. 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

B. As part of the screening process, management should contact the references provided by the job candidate.

C. When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.

D. 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.

A. A process, effected by an entity's board of directors, management, and other personnel,designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance

B. A process implemented to review how well the organization's risk management capabilities have increased value over time and how they will continue to drive value for the organization

C. A process involving personnel at all levels of the organization that aims to eliminate all uncertainty and risk while also ensuring the achievement of organizational goals

D. A process aimed at proactively identifying, evaluating, and addressing an organization ' s vulnerabilities to fraud by both internal and external sources

A. The continued pressures of a culture that rewards affluence and success

B. The economy ' s increased reliance on credit

C. The increased constraints of the regulatory environment for businesses

D. The increased opportunity for wrongdoing as a result of advancing information technologies

A. Eliece should encourage Jewel to report the information to law enforcement because she cannot agree to Jewel's request.

B. Eliece should immediately contact management at Silver Inc. to provide information about her conversation with Jewel and her request for confidentiality.

C. Eliece should promise Jewel that she will keep the information confidential even though she knows that she will likely be unable to keep that promise.

D. Eliece should tell Jewel that she will try to keep the information as confidential as possible but she might have an ethical obligation to inform their employer.

A. Background check policies

B. Discipline policies

C. Employee monitoring software

D. Employee support programs

A. Corporate violations that involve large sums of money are often spread among so many organizations that each gains very little individually.

B. Violations are caused by innocent errors in judgment rather than economic necessity.

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

D. Government regulation is unnecessary because the matters being regulated are unimportant.

A. Appoint a mandatory independent finance committee.

B. Develop a written charter for the audit committee.

C. Assign oversight of the hotline reporting program to shareholders.

D. Provide adequate resources and authority to management.

A. XYZ only needs to undertake due diligence procedures if ABC conducts business in countries with known corruption risks.

B. XYZ does not need to take any specific procedures to verify ABC ' s identity before accepting the transaction

C. XYZ should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination

D. XYZ should examine ABC ' s net worth as part of deciding whether to allow the purchase on credit.

A. Mary should inform employees of the precise methods for reporting potential fraud, such as completing an online form.

B. Mary should inform employees that the names of all individuals who report misconduct will be shared with the organization ' s governing body and law enforcement.

C. Mary should inform employees that they are required to report any information about potential fraud directly and only to their immediate supervisor.

D. Mary should inform employees that they will be held accountable for reporting tips that cannot be verified.

A. When expressing the organization ' s risk appetite, Gian should do so without regard to the company ' s culture or operations.

B. Gian should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented them.

C. Gian must assign both a quantitative and qualitative measure to the company ' s risk appetite to accurately measure the program ' s effectiveness.

D. Gian must ensure that the company ' s investment in the fraud risk management program outweighs the benefit of those controls.

A. The goal of behavioral nudges is to remove all options other than the desired behavior from the choices available to the employee.

B. A nudge reinforces the reasons why a specific behavior is beneficial, while a reminder makes it easier or more likely that individuals will engage in the desired behavior.

C. Including information in employee training programs about the importance of properly disposing of confidential documents is an example of a nudge.

D. To be effective, a behavioral nudge should leave full autonomy for the final decision or action within the employee's control.

A. A well-developed sense of moral philosophy

B. Refusal to admit errors

C. Avoidance of conflicts of interest

D. Trustworthiness