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

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Total 255 questions

Which of the following is TRUE regarding an organization's ethics program?

A.

An ethics program should avoid addressing rewards for ethical behavior and sanctions for unethical behavior

B.

In designing the ethics program, management should consider how stakeholders throughout the organization define success

C.

To be most effective, access to the organization’s ethics policy should be restricted to external parties such as vendors and customers

D.

Having a written ethics policy is sufficient to communicate management’s ethical philosophy and serve as a comprehensive ethics program

Helene has been working at WPX Corp. for nine years. She takes some of the company's products from the warehouse and sells them online. Helene tells herself that the company owes it to her for her "years of underpaid service." This situation BEST illustrates which component of the Fraud Triangle?

A.

Integrity lapse

B.

Rationalization

C.

Perceived non-shareable financial need

D.

Perceived opportunity

Which of the following Is TRUE regarding the reporting of the fraud risk assessment results?

A.

The fraud risk assessment report should be delivered in a style most suited to the language of the business

B.

The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding

C.

A fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified

D.

All of the above

As part of its anti-fraud program, Elm Company is outlining the responsibilities of different stakeholders. Who is ultimately responsible for ensuring the effectiveness of the organization's anti-fraud program?

A.

Forensic accountants

B.

Management

C.

The compliance function

D.

Internal auditors

Sycamore Inc. has a simple organizational structure with few specialized departments. The structure of Sycamore Inc. increases the likelihood that fraud will go undetected within the organization.

A.

True

B.

False

Which of the following scenarios is LEAST LIKELY to be considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics?

A.

Lori accepts an assignment to infiltrate her employer and transmit inside information to a competitor.

B.

Ren undertakes an external engagement that requires him to work outside the normal work hours of his primary employer.

C.

DeVon undertakes engagements for both sides in a case of an alleged fraudulent warranty scheme.

D.

Karen accepts an assignment to search for fraud indicators at an organization in which she is an undisclosed partner.

Terrel, a Certified Fraud Examiner (CFE), unknowingly violates the law one night. Which of the following statements about the ACFE Code of Professional Ethics is TRUE?

A.

This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel knew the conduct was illegal.

B.

This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel is arrested.

C.

This conduct would not be a violation of the ACFE Code of Professional Ethics under any circumstances.

D.

This conduct would be a violation of the ACFE Code of Professional Ethics.

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

A.

They assert that a corporate governance framework should ensure the equitable treatment of all the organization’s shareholders.

B.

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

C.

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

D.

They state that a corporate governance framework should require disclosure of all financial information to the organization’s investors.

Ian is drafting a report containing the results of his company's fraud risk assessment process. To be MOST EFFECTIVE, Ian's report should:

A.

Reflect the assessment team's subjective perspective regarding the risks identified.

B.

Contain a detailed, comprehensive list of every assessment finding.

C.

Focus on the findings that will make the most impact on the company's fraud risk management efforts.

D.

Include a complete list of recommended actions for management to take to address all identified risks.

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.