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

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Total 330 questions

At the end of an engagement, a Certified Fraud Examiner (CFE) might provide a report to their client about the information uncovered during the investigation. Which of the following statements is TRUE regarding the potential privilege that applies to this report?

A.

A fraud examiner ' s report is considered privileged information and is therefore protected from being legally demanded by outside parties.

B.

A fraud examiner ' s report may be privileged from disclosure in certain circumstances, but it does not have an absolute legal privilege.

C.

A fraud examiner ' s report is privileged from disclosure by anyone other than the client.

D.

A fraud examiner ' s report is only privileged from disclosure if the author is also a professional legal advisor.

Luis, the internal audit manager for Oak Corporation, is working to formally incorporate the company’s fraud risk assessment into its audit process. Which of the following options BEST describes how Oak’s audit team should use the fraud risk assessment process and results as part of its audits?

A.

To confirm whether there is conclusive evidence that fraud is occurring within the company.

B.

To inform the development of audit programs for areas that have been identified as having any risk of fraud, regardless of the risk level.

C.

To design audit tests to evaluate whether the company’s anti-fraud controls are operating effectively and efficiently.

D.

To validate whether the organization is appropriately managing its low-to-moderate fraud risks.

Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?

A.

They state that a corporate governance framework should promote transparent and fair markets and the efficient allocation of resources.

B.

They assert that a corporate governance framework should ensure that the treatment of shareholders differs based on the class of stock they own.

C.

They are intended to be applicable in emerging markets but not in developed economies.

D.

They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.

Which of the following is TRUE regarding a background check policy for employees?

A.

When verifying past employment, management should only ask previous employers to verify the candidate ' s previous position and dates of employment.

B.

If a background check was conducted on an employee at the time of hire, then there is no need for management to conduct additional background checks on that employee during their employment.

C.

As part of the screening process, management should contact the personal and professional references provided by the job candidate only if they are unsure whether the candidate is being honest.

D.

Management should perform a background check on any candidate who will have access to cash, checks, credit card numbers, or other items that are easily stolen.

According to the 2020 Report to the Nations, which of the following is the MOST COMMON method by which frauds are detected?

A.

Internal audit

B.

Confession

C.

Tips

D.

External audit

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

A.

The punishment for intentional noncompliance should be decided solely based on the perpetrator’s specific circumstances.

B.

Formal sanctions for intentional noncompliance should be kept private in all circumstances.

C.

Staff at all levels of the organization should be responsible for monitoring compliance with the program.

D.

The program must include systems designed to identify, address, and monitor compliance violations.

During a fraud risk assessment, a focus group would be MOST HELPFUL in which of the following situations?

A.

The assessment team would like to provide a means for anonymous employee suggestions or responses to questions posed.

B.

The assessment team would like to observe the interactions of several employees discussing the organization ' s current fraud awareness training.

C.

The assessment team would like to obtain individuals ' responses through a formal electronic questionnaire.

D.

The assessment team would like to get candid one-on-one feedback from employees in a private setting.

(During a fraud risk assessment, an interview would be MOST HELPFUL in which of the following situations?)

A.

The assessment team would like to observe the interactions of several employees discussing the organization’s current fraud awareness training.

B.

The assessment team would like to get candid one-on-one feedback from employees in a private setting.

C.

The assessment team would like to provide a means for anonymous employee suggestions or responses to questions posed.

D.

The assessment team would like to obtain individuals’ responses through a formal electronic questionnaire.

According to Diane Vaughan, which of the following factors increases an organization ' s inherent inclination toward committing crime?

A.

Management seeks out diversity in attitudes and perspectives when hiring employees

B.

Rewards are given to employees who challenge the status quo

C.

Management links employee performance goals with company performance goals

D.

All of the above

Management at Alpha Company is developing a corporate compliance program. To ensure that the program will be effective, management should both incentivize employees for their compliance and discipline them for any violations.

A.

True

B.

False