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

1. Fraud risks related to corruption include:

A) Fraudulent customer payments
B) Espionage by competitors
C) Reporting revenue in the wrong accounting period
D) Payment of bribes to procure business

2. During a fraud risk assessment, the assessment team determines that it would like to observe the interactions among several employees as they collectively discuss the organization's current fraud awareness training. Which of the following techniques would be MOST HELPFUL for the team to use in gathering this information?

A) Surveys
B) Interviews
C) Anonymous feedback mechanisms
D) Focus groups

3. Patrick is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking his audit procedures, he discovers evidence that senior management has been fraudulently manipulating the financial statements.
Which of the following is Patrick's BEST response to these findings?

A) Patrick should immediately report his findings to local law enforcement authorities.
B) Patrick should confront management with his audit findings and try to get a confession.
C) Patrick should not disclose his findings to any other parties due to client confidentiality
D) Patrick should report his findings to those charged with governance of the organization.

4. According to International Organization for Standardization (ISO) 31000:2018, an effective and efficient risk management program contains all of the following principles EXCEPT:

A) The program facilitates continuous improvement.
B) The program takes human and cultural factors into account.
C) The program is static and consistent, even during times of organizational change.
D) The program is customized and proportionate to the organization's operations and objectives.

5. Daniela, an independent Certified Fraud Examiner (CFE), was hired by Charles, executive director of a nonprofit organization, to investigate a straightforward embezzlement case.
Duringthe investigation, Daniela learns that Charles is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Daniela should:

A) Resign from the engagement.
B) Not disclose the information about Charles.
C) Tell the nonprofit's board of trustees about Charles
D) Report Charles to law enforcement

Solutions: