CFE-Fraud-Prevention-and-Deterrence Practice Questions

A.  

Serving as the intermediary between staff-level employees and management.

B.  

Assessing the strategy and underlying purpose of management ' s decisions and actions.

C.  

Electing the company shareholders and supervising their decisions and actions.

D.  

Directing employees to organize and execute business activities.

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.  

Overseeing management ' s actions to manage fraud risks

D.  

Attesting that the organization ' s financial statements are free of material misstatements caused by fraud

A.  

A salesman offering bribes to secure a contract

B.  

An accounting clerk forging company checks to herself

C.  

A doctor conspiring with patients to Tile false health care insurance claims

D.  

Management of several construction companies engaging In bid rigging

A.  

Fraud audit procedures should be designed to incorporate an element of surprise

B.  

Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods

C.  

Fraud assessment questioning techniques are most appropriately used as part of the normal audit process

D.  

Implementing proactive fraud audit procedures demonstrates management ' s intention to aggressively look for possible fraudulent conduct

A.  

It should be used to assess whether there is a moderate-to-high risk of management overriding controls within the moderate-to-high fraud risk areas.

B.  

It should be used to replace the auditor ' s own identification and assessment of fraud risks.

C.  

it should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.

D.  

It should be used to design audit tests to evaluate whether the controls are operating effectively.

A.  

A mandatory independent compensation committee

B.  

Shareholder oversight of internal controls

C.  

A written charter for management

D.  

Adequate audit committee resources and authority

A.  

Po may include her opinion on the internal controls in her report to management only if management agrees to compensate her for the addition.

B.  

Po may include her opinion on the internal controls in her report to management because it is a technical matter.

C.  

Po may include her opinion on the internal controls in her report to management only if she amends her contract.

D.  

Po may not include her opinion on the internal controls in her report to management because that is not what she was hired to assess.

A.  

Rationalization

B.  

Perceived opportunity

C.  

Perceived acquiescence

D.  

Perceived non-shareable financial need

A.  

Internal audit

B.  

Confession

C.  

Tips

D.  

External audit

A.  

Rodrigo. a CF

E.  

uncovered several material Internal control deficiencies unrelated to the Kickback scheme he was Investigating. In his final report to management. Rodrigo included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

B.  

Vivian, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she was in a hurry to complete the investigation, she overlooked key items of evidence and ended up failing to uncover a major fraud scheme.

C.  

Tom, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss. A year later, he received a court order to provide the client ' s file to the ordering court. Tom complied with the court order, even though he did not have the client ' s authorization to do so.

D.  

All of the above are violations.