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CFE-Fraud-Prevention-and-Deterrence Practice Questions

Certified Fraud Examiner - Fraud Prevention and Deterrence Exam

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Total Questions : 330

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Question # 51

Evangelique is a government auditor. During an audit of a public sector organization’s financial statements, she uncovers evidence of a potential fraud. Which of the following statements is TRUE regarding Evangelique’s responsibility to report these findings?

Options:

A.  

Evangelique is legally prohibited from reporting the findings to any party outside the organization being audited.

B.  

Evangelique’s reporting requirements are the same as those for external auditors in the private sector.

C.  

Evangelique must comply with the reporting requirements for all governmental auditors that are set by global auditing standards.

D.  

Evangelique’s reporting requirements depend on the jurisdiction of the entity and the specific audit mandate.

Discussion 0
Question # 52

Which of the following is one of the three general methods used to control corporate crime?

Options:

A.  

Pressure from changes in the competitive environment

B.  

Lowered regulatory enforcement by the government

C.  

Loss of funding from financial institutions

D.  

Demands from consumers to change

Discussion 0
Question # 53

According to the 2020 Report to the Nations.___________schemes ate the MOST COMMON form of occupational fraud,

while_________schemes are the MOST COSTLY form of occupational fraud.

Options:

A.  

Asset misappropriation; corruption

B.  

Corruption, asset misappropriation

C.  

Financial statement fraud: corruption

D.  

Asset misappropriation: financial statement fraud

Discussion 0
Question # 54

Which of the following options is an example of an anti-fraud control that is primarily preventive in nature?

Options:

A.  

A whistleblower hotline.

B.  

Proactive data analysis techniques.

C.  

Continuous audit techniques.

D.  

Employee background checks.

Discussion 0
Question # 55

A professional organization ' s code of conduct serves which of the following purposes?

Options:

A.  

A code offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.

B.  

A code acts as a substitute for legal and regulatory requirements that apply to the profession.

C.  

A code provides answers to all ethical dilemmas that the organization ' s members might encounter.

D.  

A code facilitates practical enforcement and internal discipline throughout a profession.

Discussion 0
Question # 56

The existence of many specialized departments within a company generally decreases the overall risk of fraud within the organization.

Options:

A.  

True

B.  

False

Discussion 0
Question # 57

Benjamin, a Certified Fraud Examiner (CFE). was contacted regarding an engagement to investigate a complex money laundering case spanning numerous international jurisdictions and involving multiple cutting-edge technologies. Benjamin had previously attended a seminar on investigating money laundering schemes, but he had no other training or experience in such cases. However, he accepted the engagement and chose to conduct the work himself. Benjamin ' s conduct would likely be a violation of the ACFE Code of Professional Ethics.

Options:

A.  

True

B.  

False

Discussion 0
Question # 58

An effective system of anti-fraud controls

Options:

A.  

Fully eliminates the risk of fraud

B.  

Focuses more on detective controls than preventive controls

C.  

Focuses more on preventive controls than detective controls

D.  

Increases the perception that fraud will be detected

Discussion 0
Question # 59

Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?

Options:

A.  

ISA 240 requires auditors to effectively raise awareness about the risk of fraud within the audited organization.

B.  

ISA 240 establishes standards regarding the auditor ' s responsibility to consider fraud in an audit of financial statements.

C.  

ISA 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization.

D.  

ISA 240 creates requirements for management regarding the establishment of a holistic fraud risk management program.

Discussion 0
Question # 60

Which of the following components of the Committee of Sponsoring Organizations of the Treadway Commission’s COSO Enterprise Risk Management—Integrating with Strategy and Performance refers to an organization’s ability to continually assess how well its enterprise risk management ERM capabilities and practices have increased value over time and how they will continue to drive value for the organization?

Options:

A.  

Governance and culture

B.  

Review and revision

C.  

Strategy and objective-setting

D.  

Risk tolerance

Discussion 0
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