CFE-Fraud-Prevention-and-Deterrence Practice Questions

A.  

Collusion between contractors

B.  

Adding ghost employees to payroll

C.  

Reporting revenue in the wrong period

D.  

Embezzling incoming customer payments

A.  

Benjamin’s conduct would be a violation of the ACFE Code of Professional Ethics only if he also violated applicable banking regulations.

B.  

Benjamin’s conduct would be a violation of the ACFE Code of Professional Ethics.

C.  

Benjamin’s conduct would be a violation of the ACFE Code of Professional Ethics only if he failed to find evidence of fraud.

D.  

Benjamin’s conduct would not be a violation of the ACFE Code of Professional Ethics.

A.  

An organization should avoid revealing that it is seeking information about potential vendors prior to starting its relationship 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 ensure that vendors have their own ethics and compliance program before engaging in any transactions with them.

A.  

Only a small percentage of perpetrators are punished when an organization deals with a fraud case internally.

B.  

Most fraud cases are only handled internally and are not referred to law enforcement for prosecution

C.  

The primary reason organizations decline to prosecute fraud cases is a belief that their internal discipline methods are sufficient

D.  

When fraud cases are handled internally, an employee is more likely to be suspended or put on probation than to be terminated for their crime.

A.  

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

B.  

The system enacted to ensure effective oversight of the board of directors, management, and all other parties responsible for an organization ' s direction, operations, and performance.

C.  

The system that is designed and implemented to eliminate all uncertainty and risk while also ensuring the achievement of organizational goals.

D.  

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.

A.  

True

B.  

False

A.  

It prioritizes implementing detective controls over preventive controls.

B.  

It deters fraudsters by increasing the perception that fraud will be detected.

C.  

It fully eliminates the risk of fraud by removing opportunities for misbehavior.

D.  

It focuses more on preventive controls than detective controls.

A.  

Not disclose the information about Green.

B.  

Report Green to law enforcement

C.  

Tell the company ' s board of directors about Green.

D.  

Resign from the engagement

A.  

True

B.  

False

A.  

Hiring policies and procedures

B.  

Independent reconciliations

C.  

Separation of duties

D.  

Fraud awareness training