CFE-Fraud-Prevention-and-Deterrence Practice Questions

A.  

Internal auditors

B.  

The compliance function

C.  

Management

D.  

External auditors

A.  

Transparency

B.  

Responsibility

C.  

Fairness

D.  

Accountability

A.  

The assessment team should consider how employees behave as part of Its assessment

B.  

The assessment should be used to improve employee fraud awareness.

C.  

The designation of an area as being high risk does not conclusively mean that fraud is occurring there.

D.  

The objective of the assessment is to provide an estimate of the organization ' s fraud losses.

A.  

Including ethics-based metrics as a component of performance evaluations

B.  

Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks

C.  

Establishing loosely defined job descriptions that allow employees flexibility in their roles

D.  

Tying employee compensation to reasonable organizational performance goals

A.  

Communicating the expectations of those governing the fraud risk management program

B.  

Performing comprehensive fraud risk assessments to identify specific fraud schemes

C.  

Deploying preventive and detective fraud control activities to mitigate fraud risk

D.  

Developing one-time evaluations for each fraud risk management principle

A.  

The absence of capable guardians

B.  

The availability of suitable targets

C.  

The presence of motivated offenders

D.  

The lack of societal ethics

A.  

Baldwin asking for guidance from his family and friends.

B.  

Baldwin reviewing the ACFE Code of Professional Ethics.

C.  

Baldwin contemplating philosophical principles related to ethics.

D.  

Baldwin reading the applicable contract law.

A.  

The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement

B.  

The auditors should assess the need to adjust the nature, timing, and extent of remaining audit procedures based on this evidence.

C.  

The auditors can ignore the misstatement because the omitted amount is less than the quantitative materiality threshold and therefore immaterial to the audit.

D.  

The auditors do not need to be concerned with this evidence, as asset misappropriation schemes are not considered relevant or material for external audit purposes.

A.  

Avoidance of differences of opinion on all material matters

B.  

Independence of mental attitude and avoidance of conflicts of interest

C.  

Prioritization of desires for personal gain over the interests of clients

D.  

Ability to conceal errors to preserve the reliability of the work performed

A.  

Blue should consider Green ' s expected purchasing pattern and method of payment in determining whether to accept the transaction.

B.  

Blue only needs to undertake due diligence procedures if Green is requesting to pay on credit.

C.  

Blue should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination.

D.  

Blue does not need to undertake any specific due diligence procedures for this transaction.