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CFE-Fraud-Prevention-and-Deterrence Practice Questions

Certified Fraud Examiner - Fraud Prevention and Deterrence Exam

Last Update 4 days ago
Total Questions : 330

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Question # 61

The internal auditor ' s fraud-related responsibilities include which of the following?

Options:

A.  

Evaluating the organization ' s structures and process for fraud risk governance.

B.  

Issuing a report asserting that the organization ' s financial statements do not contain material misstatements caused by fraud.

C.  

Overseeing management ' s actions to manage fraud risks.

D.  

Reporting to regulators regarding the entity ' s vulnerability to fraud.

Discussion 0
Question # 62

Which of the following is NOT a responsibility of the organization ' s board of directors?

Options:

A.  

Serving as the intermediaries between shareholders and management

B.  

Acting as guardians of the organization ' s resources and assets

C.  

Directing employees to execute business activities

D.  

Assessing the strategy and underlying purpose of management ' s decisions and actions

Discussion 0
Question # 63

For Its compliance program to be effective, an organization must perform procedures to ensure management hires only ethical Individuals who exercise a substantial measure of discretion In acting on the organization ' s behalf

Options:

A.  

True

B.  

False

Discussion 0
Question # 64

Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Smith to encourage his team members to keep their cash drawers in balance?

Options:

A.  

Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.

B.  

Publicly call out and criticize employees whose cash drawers are over or short.

C.  

Take away an hour of paid time off for each time the drawer is over or short

D.  

Demote employees who continue to have reconciliation discrepancies

Discussion 0
Question # 65

Which of the following statements is MOST ACCURATE regarding best practices that organizations can take to protect and support whistleblowers?

Options:

A.  

Organizations should include in their whistleblower policies the specific penalties that people might encounter for refusing to report suspected misconduct.

B.  

Organizations should emphasize that whistleblower protection rules are only intended for lower-level employees who are more vulnerable to retaliation.

C.  

Organizations should publicize their whistleblower policies and procedures to individuals both inside and outside of the organization.

D.  

Organizations should implement a clear whistleblower policy that lists every type of misconduct that has ever been reported at the company.

Discussion 0
Question # 66

Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission ' s (COSO) Enterprise Risk Management—Integrating with Strategy and Performance?

Options:

A.  

Event avoidance

B.  

Risk tolerance

C.  

Compliance

D.  

Review and revision

Discussion 0
Question # 67

According to the Committee of Sponsoring Organizations of the Treadway Commission ' s (COSO) Internal Control-integrated Framework (the Framework), there are five interrelated components of a company ' s internal control. Which of the following is NOT among these five components?

Options:

A.  

Monitoring

B.  

Control environment

C.  

Independent oversight

D.  

Information and communication

Discussion 0
Question # 68

According to the routine activities theory, all of the following are important elements that influence crime EXCEPT:

Options:

A.  

The presence of motivated offenders

B.  

The lack of accountability for misdeeds

C.  

The absence of capable guardians

D.  

The availability of suitable targets

Discussion 0
Question # 69

Willow, Inc. has a complex organizational structure with many specialized departments. The structure of Willow, Inc. increases the likelihood that fraud will go undetected within the organization.

Options:

A.  

True

B.  

False

Discussion 0
Question # 70

Which of the following is among the board of directors ' primary responsibilities related to fraud risk management?

Options:

A.  

Overseeing the organization ' s fraud risk management activities

B.  

Designing the fraud risk management program

C.  

Punishing fraud perpetrators discovered through fraud risk management activities

D.  

Implementing the fraud risk management program

Discussion 0
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