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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:

1. For Its compliance program to be effective, an organization must perform procedures to ensure management hires only ethical Individuals who exercise a substantial measure of discretion In acting on the organization's behalf

A) False
B) True

2. 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) The compliance function
B) Internal auditors
C) Management
D) Forensic accountants

3. Which statement BEST describes fraud deterrence?

A) Fraud deterrence eliminates the need for internal controls
B) Fraud deterrence seeks to reduce the likelihood of fraud through prevention and detection measures
C) Fraud deterrence guarantees fraud will never occur
D) Fraud deterrence focuses only on punishment after fraud occurs

4. Charles, the chief executive officer (CEO) of the Baking & Things Corporation, hired Daniela, a Certified Fraud Examiner (CFE), to investigate an embezzlement case. During the investigation, Daniela learns that Charles is involved in an unrelated fraud. What action should Daniela take based on the ACFE Code of Professional Ethics?

A) Daniela should tell the company's board of directors about Charles.
B) Daniela should immediately resign from the engagement.
C) Daniela should report Charles to law enforcement.
D) Daniela should contact the media to report what she found.

5. Employee anti-fraud education should:

A) Be presented by organizational executives or anti-fraud professionals only.
B) Include descriptions of the procedures that management uses to detect fraud.
C) Be restricted to formal educational mechanisms to reinforce the importance of the message.
D) Include examples of prior employee misconduct and how those situations were handled.

Solutions: