CFE-Fraud-Prevention-and-Deterrence Practice Questions

A.  

True

B.  

False

A.  

Criminal behavior is explained by an individual ' s general needs and values.

B.  

Criminal behavior is acquired through participation with intimate personal groups.

C.  

Criminal behavior is learned from other people in a process of communication.

D.  

Criminal behavior is learned using the same mechanisms as other learning

A.  

Eliece should immediately contact management at Silver Inc. to provide information about her conversation with Jewel and her request for confidentiality.

B.  

Eliece should promise Jewel that she will keep the information confidential even though she knows that she will likely be unable to keep that promise.

C.  

Eliece should encourage Jewel to report the information to law enforcement because she cannot agree to Jewel’s request.

D.  

Eliece should tell Jewel that she will try to keep the information as confidential as possible but she might have an ethical obligation to inform their employer.

A.  

Forensic accountants

B.  

Management

C.  

The compliance function

D.  

Internal auditors

A.  

When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.

B.  

At a minimum, management should conduct a background check on any candidate who will have constant access to cash, checks, and credit card numbers, or other easily stolen items.

C.  

Where permitted by law, management should run a background check on any existing employee who is being promoted to a position that includes access to sensitive or valuable company resources, even if a background check was run on the individual at the time of hire

D.  

As part of the screening process, management should contact the references provided by the job candidate.

A.  

ABC must comply with specific listing standards for the stock exchange(s) on which it is listed

B.  

ABC is required to comply with G20/OECD Principles of Corporate Governance

C.  

ABC is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions

D.  

ABC is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.

A.  

Obtaining reasonable assurance that the organization ' s financial statements are free of material misstatements caused by fraud

B.  

Overseeing management ' s actions to manage fraud risks

C.  

Evaluating indicators of fraud and deciding whether any further action is necessary or whether an investigation should be recommended

D.  

Establishing and maintaining effective anti-fraud controls at a reasonable cost

A.  

Positive reinforcement

B.  

Negative reinforcement

C.  

Punishment

D.  

None of the above

A.  

Employee monitoring software

B.  

Employee support programs

C.  

Discipline policies

D.  

Background check policies

A.  

Riva, a CFE, uncovered material internal control deficiencies that were material but unrelated to the kickback scheme she was investigating. In her final report to management, Riva included information about the deficiencies despite their being unrelated to the situation she was hired to investigate.

B.  

Dee, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she rushed to complete the investigation, she overlooked key items of evidence and failed to uncover a fraud scheme.

C.  

Derrick, a CFE, was hired by a client to conduct a fraud examination but found nothing abnormal. A year later, he received a court order to provide the client ' s file to the court. Derrick complied with the court order despite not having the client ' s authorization to provide the file.

D.  

All of the above are violations.