CFE-Fraud-Prevention-and-Deterrence Practice Questions

A.  

Eliece should immediately contact management at Silver Inc. to provide information about her conversation with Jewel and her request for confidentiality.

B.  

Eliece should promise Jewel that she will keep the information confidential even though she knows that she will likely be unable to keep that promise.

C.  

Eliece should encourage Jewel to report the information to law enforcement because she cannot agree to Jewel’s request.

D.  

Eliece should tell Jewel that she will try to keep the information as confidential as possible but she might have an ethical obligation to inform their employer.

A.  

Determining the effectiveness of an organization ' s internal control system involves assessing whether all of the identified components are in place and functioning effectively.

B.  

Determining the effectiveness of an organization ' s internal control system involves assessing whether the identified components meet minimum legal and compliance requirements.

C.  

Independent oversight is one of the primary components of internal control identified in the Framework.

D.  

The Framework identifies ten components of internal control that must all be in place for the internal control system to be effective.

A.  

True

B.  

False

A.  

Employee monitoring software

B.  

Employee support programs

C.  

Discipline policies

D.  

Background check policies

A.  

True

B.  

False

A.  

True

B.  

False

A.  

Executive failures

B.  

Excessive regulatory requirements

C.  

Profit pressure

D.  

Unethical corporate culture

A.  

Incorporate an element of predictability in the selection of auditing procedures to be performed

B.  

Consider the knowledge, skill, and ability levels of the individuals who are assigned significant audit responsibilities

C.  

Disregard the entity ' s selection and application of accounting policies concerning complex transactions

D.  

All of the above

A.  

It replaces the need for individuals to consult their own conscience.

B.  

It facilitates practical enforcement and profession-wide Internal discipline.

C.  

It serves as a reference and benchmark for ethical guidance

D.  

It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles

A.  

A confused organizational structure makes it harder for a fraudster to perpetrate and conceal their misdeeds.

B.  

Effectively documenting and communicating the organizational structure to all employees can help prevent fraud.

C.  

Formally establishing and communicating the proper flow of information in an organization can hinder its fraud prevention initiatives.

D.  

Displaying organizational and departmental hierarchies can help fraudsters select their targets.