Free Practice Questions for ACFE CFE-Fraud-Prevention-and-Deterrence Exam

An organization should subject vendors to an internal audit conducted by the organization's own auditors before agreeing to do business with them.

An organization should avoid revealing that it is seeking information about potential vendors prior to starting a relationship with them.

An organization should request that new vendors fill out a questionnaire about their background immediately after signing a contract with them.

An organization should include a clause in the contract requiring the vendor to report any misconduct before entering into an agreement with them.

The ACFE Code of Professional Ethics allows Rhys to comply with management's request without limitations.

The ACFE Code of Professional Ethics allows Rhys to comply with management's request only if he can find another CFE to co-sign his report.

The ACFE Code of Professional Ethics allows Rhys to comply with management's request only if the company has liability insurance to cover an incorrect assertion.

The ACFE Code of Professional Ethics absolutely prohibits Rhys from complying with management's request.

Avoidance of differences of opinion on all material matters

Independence of mental attitude and avoidance of conflicts of interest

Prioritization of desires for personal gain over the interests of clients

Ability to conceal errors to preserve the reliability of the work performed

Emphasizing to all employees that the company maintains a policy of zero tolerance for fraud.

Keeping all known incidents of fraud private to protect the identities of parties involved.

Maintaining a policy that allows employees one warning before they are terminated for committing fraud

Punishing frauds only if they have a significant financial impact.

Serving as the intermediaries between shareholders and management

Acting as guardians of the organization's resources and assets

Directing employees to execute business activities

Assessing the strategy and underlying purpose of management's decisions and actions

Controls are not effective in preventing theft and fraud If those at risk do not know of their presence

Most experts agree that it is harder to detect frauds than to prevent them

Educating employees about company hotlines and reporting programs increases their perception of detection

Conducting covert audits is among the most effective fraud prevention methods

True

False

Giving opinions regarding technical matters

Participating in an activity with an undisclosed conflict of interest

Engaging in an activity that is legal within her jurisdiction

Providing conclusions based on discovered evidence

Riva, a CFE, uncovered material internal control deficiencies that were material but unrelated to the kickback scheme she was investigating. In her final report to management, Riva included information about the deficiencies despite their being unrelated to the situation she was hired to investigate.

Dee, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she rushed to complete the investigation, she overlooked key items of evidence and failed to uncover a fraud scheme.

Derrick, a CFE, was hired by a client to conduct a fraud examination but found nothing abnormal. A year later, he received a court order to provide the client's file to the court. Derrick complied with the court order despite not having the client's authorization to provide the file.

All of the above are violations.

Employee monitoring software

Employee support programs

Discipline policies

Background check policies