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

Formal sanctions for intentional noncompliance should be kept private and only shared if a party absolutely needs to know.

All employees at the organization should be responsible for monitoring compliance with the program.

Punishment for intentional noncompliance should be individualized based on the offender's personal circumstances.

Systems to monitor and identify breaches in compliance must be included in the fraud risk management program.

Identity theft is both the most common and costliest category of occupational fraud.

Asset misappropriation schemes are the most common category of occupational fraud.

Corruption schemes are the costliest category of occupational fraud.

Financial statement fraud schemes are the most common category of occupational fraud.

Positive reinforcement

Loss of reward

Punishment

Negative stimuli

The objective of the assessment is to help the organization identify what makes it most vulnerable to fraud.

The assessment should be used to improve employee fraud awareness

The assessment team should consider how employees behave as part of its assessment

The designation of an area as high risk should only occur if the assessment has conclusively revealed that fraud is occurring there.

True

False

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

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

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

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

Prioritization of desires for personal gain over the interests of clients

A well-developed sense of moral philosophy and the ability to distinguish right from wrong

The ability to conceal errors to preserve the reliability of the work performed

Avoidance of differences of opinion on all material matters

Control activities

Risk assessment

Monitoring

Control environment

ISA 240 requires auditors to effectively educate the staff about the risk of fraud within the audited organization.

ISA 240 establishes auditors as being primarily responsible for implementing anti-fraud internal controls within an organization.

ISA 240 provides guidance regarding the auditor's responsibility to consider fraud in an audit of financial statements.

ISA 240 creates requirements for the board of directors regarding the establishment of a holistic fraud risk management program.

It replaces the need for individuals to consult their own conscience.

It facilitates practical enforcement and profession-wide Internal discipline.

It serves as a reference and benchmark for ethical guidance

It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles