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

1. Benjamin, a Certified Fraud Examiner (CFE). was contacted regarding an engagement to investigate a complex money laundering case spanning numerous international jurisdictions and involving multiple cutting-edge technologies. Benjamin had previously attended a seminar on investigating money laundering schemes, but he had no other training or experience in such cases. However, he accepted the engagement and chose to conduct the work himself.
Benjamin's conduct would likely be a violation of the ACFE Code of Professional Ethics.

A) False
B) True

2. 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) All of the above
C) implement two separate sets of ethics policies, one for management and one for employees
D) Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place

3. Susannah Is conducting an external audit of a company In a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking her audit procedures, she discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Susannah's BEST response to these findings?

A) Susannah should Immediately report her findings to the secunties regulators
B) Susannah should report her findings to the audit committee of the board of directors.
C) Susannah should not disclose her findings to any other parties due to client confidentiality.
D) Susannah should confront management with her audit findings and try to get a confession.

4. As part of its anti-fraud program, Oak Company is outlining the responsibilities of different stakeholders. Who is ultimately responsible for setting the organization's ethical tone?

A) Management
B) General counsel
C) Human resources
D) Fraud examiners

5. Harry is an internal auditor with ABC Company. Harry's supervisor, the chief audit executive (CAE), is the fraud risk assessment sponsor and has tasked Harry with drafting an email communication regarding ABC's upcoming fraud risk assessment process. Which of the following is a best practice that Harry should implement?

A) Harry should keep the communication private and only share it with executive management.
B) Harry should find a generic template to use as the primary communication to the entire staff.
C) Harry's communication should encourage employees to participate in the assessment process.
D) Harry's communication should be sent to the entire staff from his own email address.

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