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

1. Which of the following is FALSE regarding the fraud risk assessment learn?

A) The team should consist of individuals with diverse knowledge, skills, and perspectives
B) The team size should be limited to a maximum of three individuals
C) The team members should have experience in gathering and eliciting information
D) The team members might include both internal and external sources.

2. Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?

A) ISA 240 establishes auditors as being primarily responsible for implementing anti-fraud internal controls within an organization.
B) ISA 240 creates requirements for the board of directors regarding the establishment of a holistic fraud risk management program.
C) ISA 240 requires auditors to effectively educate the staff about the risk of fraud within the audited organization.
D) ISA 240 provides guidance regarding the auditor's responsibility to consider fraud in an audit of financial statements.

3. An organization discovers that a purchasing manager approved contracts for a vendor secretly owned by a close friend. The manager did not receive any payments. Which fraud risk is MOST relevant?

A) Payroll fraud
B) Cash larceny
C) Conflict of interest
D) Financial statement fraud

4. Baldwin, a Certified Fraud Examiner (CFE), has an ethical dilemma regarding his business contract with his professional partners. Which of the following scenarios demonstrates Baldwin consulting a source of guidance that would be considered the LOWEST level of reference to use for determining the most ethical action to take?

A) Baldwin reviewing the ACFE Code of Professional Ethics.
B) Baldwin asking for guidance from his family and friends.
C) Baldwin contemplating philosophical principles related to ethics.
D) Baldwin reading the applicable contract law.

5. The objectives of a fraud risk management program include:

A) Punishing fraud perpetrators
B) Proactively identifying fraud risks
C) Limiting the damage caused by fraud occurrences
D) All of the above

Solutions: