CFE-Fraud-Prevention-and-Deterrence Practice Questions

A.  

Fraud risk is the overall amount of organizational or individual criminal activity, whereas fraud is the opportunity to deprive another of property or money through a specific act.

B.  

Fraud is the organization’s vulnerability from individuals capable of combining the elements of the Fraud Triangle, whereas fraud risk is the commission of any fraudulent act.

C.  

Fraud risk is the frequency at which an organization is victimized by fraud, whereas fraud refers to the opportunity for criminal acts to victimize the organization.

D.  

Fraud is the deliberate act to deprive another of property or money, whereas fraud risk is the potential for an individual or group to commit the act.

A.  

Responsibility

B.  

Fairness

C.  

Accountability

D.  

Transparency

A.  

They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.

B.  

They state that a corporate governance framework should require disclosure of all financial information to the organization’s investors.

C.  

They assert that a corporate governance framework should ensure the equitable treatment of all the organization’s shareholders.

D.  

They are intended to be applicable in developed economies but not in emerging markets.

A.  

Evaluate the controls without regard to management’s ability to override them.

B.  

Conduct competitive analysis on what types of fraud schemes are most common in the industry.

C.  

Review the available documentation of the relevant policies and procedures.

D.  

Test the full population of transactions subject to the identified controls for compliance.

A.  

The behavior will return when punishment ceases

B.  

The behavior will be permanently suppressed

C.  

The behavior will occur more frequently.

D.  

The behavior will not be affected by the punishment

A.  

Elena should provide a written communication about the findings to those charged with governance.

B.  

Elena should work independently to correct the internal control deficiencies.

C.  

Elena should suspend the audit and begin a new audit focused on the internal controls.

D.  

Elena should report the findings in writing to the appropriate law enforcement agencies.

A.  

A process implemented to review how well the organization’s risk management capabilities have increased value over time and how they will continue to drive value for the organization

B.  

A process, effected by an entity’s board of directors, management, and other personnel,designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance

C.  

A process involving personnel at all levels of the organization that aims to eliminate all uncertainty and risk while also ensuring the achievement of organizational goals

D.  

A process aimed at proactively identifying, evaluating, and addressing an organization ' s vulnerabilities to fraud by both internal and external sources

A.  

The assessment team should consider how employees behave as part of Its assessment

B.  

The assessment should be used to improve employee fraud awareness.

C.  

The designation of an area as being high risk does not conclusively mean that fraud is occurring there.

D.  

The objective of the assessment is to provide an estimate of the organization ' s fraud losses.

A.  

Positive reinforcement

B.  

Loss of reward

C.  

Punishment

D.  

Negative stimuli

A.  

Patrick should confront management with his audit findings and try to get a confession.

B.  

Patrick should immediately report his findings to local law enforcement authorities.

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.