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

1. Luis, the internal audit manager for Oak Corporation, is working to formally incorporate the company's fraud risk assessment into its audit process. Which of the following is NOT a way that Oak's audit team should use the fraud risk assessment process and results as part of their audits?

A) To inform the development of audit programs for areas that have been identified as having a high risk of fraud.
B) To design audit tests to evaluate whether fraud risk controls are operating effectively.
C) To validate whether the organization is appropriately managing moderate-to-high fraud risks.
D) To confirm whether there is conclusive evidence that fraud is occurring within the company.

2. Formally documenting and communicating organizational hierarchies, including the proper flow of information, can hinder an organization's fraud prevention initiatives.

A) False
B) True

3. Pieter, a manager at Solox Corp., oversees the fraud training for the organization's employees.
He is reviewing the training for the coming year. Which of the following actions should Pieter take to ensure that Solox's employee anti-fraud education program is effective?

A) Restrict training to formal live, in-person sessions required of all full-time, lower-level employees.
B) Require the training to only be presented by organizational executives or anti-fraud professionals.
C) Include detailed descriptions of the organization's anti-fraud controls.
D) Include common characteristics that lead individuals to commit fraud.

4. In Ihe context of fraud examination, integrity requires all of the following EXCEPT:

A) An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong
B) Avoidance of differences of opinion
C) Independence of mental attitude
D) Subordination of desires for personal gain to the interests of clients, employers, and the public

5. Which statement BEST describes fraud deterrence?

A) Fraud deterrence eliminates the need for internal controls
B) Fraud deterrence seeks to reduce the likelihood of fraud through prevention and detection measures
C) Fraud deterrence guarantees fraud will never occur
D) Fraud deterrence focuses only on punishment after fraud occurs

Solutions: