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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 the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control—Integrated Framework (the Framework)?

A.

Determining the effectiveness of an organization's internal control system involves assessing whether all of the identified components are in place and functioning effectively.

B.

Determining the effectiveness of an organization's internal control system involves assessing whether the identified components meet minimum legal and compliance requirements.

C.

Independent oversight is one of the primary components of internal control identified in the Framework.

D.

The Framework identifies ten components of internal control that must all be in place for the internal control system to be effective.

XYZ, Inc. Is a specialty retailer of high-end ergonomic office furniture. The company receives a very large order from ABC Company, a new customer in a different country that wants to pay on credit. Which of the following is MOST ACCURATE regarding the due diligence procedures XYZ should perform on ABC before proceeding with this transaction?

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

D.

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

Fraud risks related to regulatory and legal misconduct include all of the following EXCEPT:

A.

Fraudulent customer payments

B.

Anti-competitive practices

C.

Insider trading

D.

Conflicts of interest

Which of the following components of the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Enterprise Risk Management—Integrating with Strategy and Performance refers to an organization’s ability to continually assess how well its enterprise risk management (ERM) capabilities and practices have increased value over time and how they will continue to drive value for the organization?

A.

Risk tolerance

B.

Governance and culture

C.

Strategy and objective-setting

D.

Review and revision

Having specialized departments within a company often increases the overall risk ot traud by the organization.

A.

True

B.

False

Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To MOST EFFECTIVELY reinforce an anti-fraud culture, management should:

A.

Use a checklist of initiatives to make sure all the elements of a strong tone at the lop are in place

B.

Create an environment in which employees are dissuaded from challenging management's decisions

C.

Visibly adhere to the same set of ethics policies that is required of all employees

D.

All of the above