ACFE : CFE-Fraud-Prevention Questions & Answers

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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. Sycamore Inc. has a simple organizational structure with few specialized departments. The structure of Sycamore Inc. increases the likelihood that fraud will go undetected within the organization.

A) True
B) False

2. Which of the following is FALSE regarding an organization's anti-fraud policy?

A) To avoid legal problems in discharging employees, the anti-fraud policy should not include any specific examples of frau and misconduct.
B) One of the most important considerations in developing the anti-fraud policy is to ensure every allegation is handled in a uniform manner.
C) In developing the anti-fraud policy, management should check with legal counsel regarding any legal considerations with respect to the policy.
D) A detailed anti-fraud policy can make it easier to investigate and punish employees who commit fraud and other dishonest acts.

3. Which of the following statements regarding recommended vendor due diligence procedures is MOST ACCURATE?

A) An organization should ensure that vendors have their own ethics and compliance program before engaging in any transactions with them.
B) An organization should perform audits of potential vendors before agreeing to conduct business with them.
C) An organization should request that new vendors complete a questionnaire about their background immediately after signing a contract with them.
D) An organization should avoid revealing that it is seeking information about potential vendors prior to starting its relationship with them.

4. Which of the following is NOT a factor that directors and management should consider when developing a corporate governance framework for an organization?

A) The legal and regulatory environment in which the organization operates
B) The organization's ethical environment
C) The organization's cultural environment
D) The ability of the framework to remain static during changes in the corporate landscape

5. Management at ABC Company wants to transfer one of the risks identified during the company's fraud risk assessment process. Which of the following actions would be MOST APPROPRIATE to support this response?

A) Deciding not to implement any responsive measures
B) Purchasing fidelity insurance to protect against the associated risk of loss
C) Implementing additional preventive and detective controls
D) Discontinuing the underlying activity completely

Solutions: