CFE-Fraud-Prevention-and-Deterrence Practice Questions

A.  

Strong intervention of the government

B.  

Voluntary changes in corporate attitudes and structure

C.  

Consumer action to force change

D.  

Media blacklisting of the organization

A.  

True

B.  

False

A.  

Crime originates from a rational and conscious decision made by the perpetrator in order to receive an intended benefit.

B.  

Crime originates from an instinctual response to external stimuli without any rational or conscious decision by the perpetrator.

C.  

Crime can be deterred by increasing the personal benefit to potential perpetrators.

D.  

Crime can be deterred by decreasing the personal risk to potential perpetrators.

A.  

True

B.  

False

A.  

Susannah should confront management with her audit findings and try to get a confession.

B.  

Susannah should Immediately report her findings to the secunties regulators

C.  

Susannah should report her findings to the audit committee of the board of directors.

D.  

Susannah should not disclose her findings to any other parties due to client confidentiality.

A.  

Positive reinforcement

B.  

Loss of reward

C.  

Punishment

D.  

Negative stimuli

A.  

Educational background

B.  

Organizational opportunity

C.  

Psychological temperament

D.  

Social status

A.  

Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented tnem.

B.  

Management must balance the investment in anti-fraud controls with the benefit of those controls and the amount of risk it is willing to accept.

C.  

Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program’s effectiveness.

D.  

Management should tailor the detailed objectives of the fraud risk management program to the organization ' s specific needs and goals.

A.  

Acting in a way that could be deemed unethical by the industry

B.  

Drawing conclusions based upon evidence

C.  

Participating in an activity where there is an undisclosed conflict of interest

D.  

Engaging in behavior that is against the law

A.  

A requirement for a corporate governance framework that protects the exercise of management’s rights.

B.  

Support for the equal treatment of all members of an organization’s governing body.

C.  

A request that governments implement effective internal controls to support good corporate governance practices.

D.  

An emphasis on the importance of timely, accurate and transparent disclosure mechanisms.