CFE-Fraud-Prevention-and-Deterrence Practice Questions

A.  

Media sources sending the message that no one has to settle for second best.

B.  

Advancement of information technologies increasing the opportunity for misconduct.

C.  

The increase in funds available from government assistance programs.

D.  

The economy ' s decreased reliance on credit and a decline in personal debt.

A.  

Reporting revenue in the wrong accounting period

B.  

Fraudulent customer payments

C.  

Espionage by competitors

D.  

Payment of bribes to procure business

A.  

Control activities

B.  

Ethical culture

C.  

Risk assessment

D.  

Monitoring

A.  

Social control theory

B.  

Operant theory

C.  

Cognitive theory

D.  

Behavioral theory

A.  

An organization should subject vendors to an internal audit conducted by the organization ' s own auditors before agreeing to do business with them.

B.  

An organization should avoid revealing that it is seeking information about potential vendors prior to starting a relationship with them.

C.  

An organization should request that new vendors fill out a questionnaire about their background immediately after signing a contract with them.

D.  

An organization should include a clause in the contract requiring the vendor to report any misconduct before entering into an agreement with them.

A.  

Flowcharts displaying departmental structures can be a helpful tool in communicating the proper flow of information as part of fraud prevention efforts.

B.  

Communicating the proper flow of information to everyone in the organization can increase the organization ' s vulnerability to fraud.

C.  

It is best to avoid formally documenting organizational structures to limit fraudsters ' ability to circumvent oversight controls.

D.  

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

A.  

" How can I prevent someone from learning what I did? "

B.  

" How likely am I to be punished for this crime? "

C.  

" Will I lose my job if my actions are discovered? "

D.  

" What will my parents think if they find out? "

A.  

The fraud risk assessment can be effectively conducted by people inside or outside of the organization.

B.  

To ensure the independence of the team members, a fraud risk assessment must be conducted by a consultant or other external party.

C.  

If the individuals conducting the fraud risk assessment truly believe that fraud could not happen at the organization, then the assessment process should reflect that belief.

D.  

The fraud risk assessment is most effective when management ' s influence on the process is limited

A.  

Transparency

B.  

Fairness

C.  

Responsibility

D.  

Accountability

A.  

Differential association theory

B.  

Routine activities theory

C.  

Justification of action theory

D.  

Rational choice theory