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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:

1. Rosie, a Certified Fraud Examiner (CFE), conducted a fraud examination for her company that led to a confession of guilt from Dean. Which of the following statements in Rosie's verbal report to management would violate the ACFE Code of Professional Ethics?

A) "Dean is guilty of embezzlement."
B) "The evidence does not support Dean's confession."
C) "Dean's confession is supported by the evidence."
D) "Dean confessed to embezzlement."

2. Which of the following is TRUE regarding the internal audit function's reporting responsibilities pertaining to fraud?

A) The internal audit function should discuss how and when to report fraud-related issues with senior management and the board of directors before such issues arise.
B) The internal audit function is permitted, but not required, to periodically report about the organization's fraud risks to senior management and the board of directors.
C) The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence.
D) The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.

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

A) Organizations should implement a clear whistleblower policy that lists out every type of misconduct that has ever been reported at the company.
B) Organizations should establish formal consequences that are to be imposed upon employees at the company who retaliate against a whistleblower.
C) Organizations should emphasize that rules regarding whistleblower protections are only intended for lower level employees who might be more vulnerable to retaliation.
D) Organizations should publicize their whistleblower procedures internally but should avoid communicating any procedural information to parties outside of the organization.

4. Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To most effectively reinforce an anti-fraud culture, management should:

A) Create an environment in which employees feel safe challenging management's decisions
B) implement two separate sets of ethics policies, one for management and one for employees
C) Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
D) All of the above

5. An effective system of anti-fraud controls

A) Focuses more on detective controls than preventive controls
B) Focuses more on preventive controls than detective controls
C) Fully eliminates the risk of fraud
D) Increases the perception that fraud will be detected

Solutions: