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

1. Which of the following is NOT a responsibility of the organization's board of directors?

A) Acting as guardians of the organization's resources and assets
B) Directing employees to execute business activities
C) Serving as the intermediaries between shareholders and management
D) Assessing the strategy and underlying purpose of management's decisions and actions

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

3. Which red flag is MOST commonly associated with corruption schemes?

A) Excessive write-offs of inventory
B) Frequent bank reconciliation differences
C) Employees with unusually close relationships to vendors or customers
D) Missing fixed assets

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) Independence of mental attitude
C) Avoidance of differences of opinion
D) Subordination of desires for personal gain to the interests of clients, employers, and the public

5. Which of the following factors is the determining aspect of white-collar crime according to modern criminological studies?

A) Organizational opportunity
B) Social status
C) Educational background
D) Psychological temperament

Solutions: