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

1. Ian is drafting a report containing the results of his company's fraud risk assessment process. To be MOST EFFECTIVE, Ian's report should:

A) Contain a detailed, comprehensive list of every assessment finding.
B) Reflect the assessment team's subjective perspective regarding the risks identified.
C) Include a complete list of recommended actions for management to take to address all identified risks.
D) Focus on the findings that will make the most impact on the company's fraud risk management efforts.

2. Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

A) Fraud examiners should not relax their skeptical attitudes under any circumstances.
B) Professional skepticism means beginning all assignments with the belief that something is amiss.
C) Fraud examiners should form the engagement hypothesis without regard to the available preliminary information.
D) Professional skepticism involves maintaining a mindset that no fraud has occurred

3. The internal auditor's fraud-related responsibilities include which of the following?

A) Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program
B) Reporting to regulators regarding the entity's vulnerability to fraud
C) Attesting that the organization's financial statements are free of material misstatements caused by fraud
D) Overseeing management's actions to manage fraud risks

4. According to ACFE research, which of the following is TRUE?

A) Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.
B) Most fraudsters have previous criminal convictions for fraud-related offenses.
C) An unwillingness to share duties is the most reported red flag displayed by fraud perpetrators prior to the detection of their crime.
D) Men commit significantly more frauds than women do.

5. Which of the following statements regarding best practices that organizations can take to protect and support whistleblowers is MOST ACCURATE?

A) Organizations should emphasize that rules regarding whistleblower protections are only intended for lower level employees who might be more vulnerable to retaliation.
B) Organizations should establish formal consequences that are to be imposed upon employees at the company who retaliate against a whistleblower.
C) Organizations should publicize their whistleblower procedures internally but should avoid communicating any procedural information to parties outside of the organization.
D) Organizations should implement a clear whistleblower policy that lists out every type of misconduct that has ever been reported at the company.

Solutions: