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

Formal sanctions for intentional noncompliance should be kept private and only shared if a party absolutely needs to know.

All employees at the organization should be responsible for monitoring compliance with the program.

Punishment for intentional noncompliance should be individualized based on the offender ' s personal circumstances.

Systems to monitor and identify breaches in compliance must be included in the fraud risk management program.

Overseeing the organization ' s fraud risk management activities.

Monitoring and proactively improving the fraud risk management program.

Performing and regularly updating the fraud risk assessment.

Implementing the fraud risk management program throughout the organization.

Begin the engagement with the belief that no fraud has occurred.

Maintain a skeptical attitude throughout the entire engagement even if the evidence shows no signs of fraudulent activity.

Maintain professional skepticism that can only be dispelled by evidence.

Form the engagement hypothesis without consideration for the nature of the assignment.

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

The Principles state that an entity ' s corporate governance framework should discourage active cooperation between corporations and stakeholders in creating wealth.

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

The Principles state that an entity ' s corporate governance framework should ensure the equitable treatment of all shareholders.

Inherent risks are risks that remain after efforts are made to mitigate fraud risk.

The objective of anti-fraud controls is to completely eliminate the inherent fraud risk.

The objective of anti-fraud controls is to reduce the residual fraud risk to a level that is significantly lower than the inherent fraud risk.

Residual risks are risks that are present before the effect of internal controls.

Hiring policies and procedures

Independent reconciliations

Separation of duties

Fraud awareness training

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

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

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

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

ISA 240 requires auditors to effectively raise awareness about the risk of fraud within the audited organization.

ISA 240 establishes standards regarding the auditor ' s responsibility to consider fraud in an audit of financial statements.

ISA 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization.

ISA 240 creates requirements for management regarding the establishment of a holistic fraud risk management program.

A sales manager using a corporate credit card for personal expenses

Management of several pharmaceutical companies engaging in a price fixing scheme

An insurance claims agent conspiring with customers to file false insurance claims and share the proceeds

An HR employee adding a ghost employee to the payroll and misappropriating the paychecks

Rational choice theory

Differential association theory

Routine activities theory

Social control theory