ACFE CFE-Fraud-Prevention-and-Deterrence Practice Exam – 140 Unique Questions [Q70-Q90]

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ACFE CFE-Fraud-Prevention-and-Deterrence Practice Exam – 140 Unique Questions

Latest Questions CFE-Fraud-Prevention-and-Deterrence Guide to Prepare Free Practice Tests

ACFE CFE-Fraud-Prevention-and-Deterrence Exam Syllabus Topics:

Topic	Details
Topic 1	Crime causation, white-collar crime, occupational fraud, fraud prevention, fraud risk assessment, and the ACFE Code of Professional Ethics
Topic 2	Demonstrate knowledge of fraud schemes, internal controls to deter fraud and other auditing and accounting matters
Topic 3	Tests your knowledge of why people commit fraud and what can be done to prevent it
Topic 4	Demostrate the knowledge of the types of fraudulent financial transactions incurred in accounting records
Topic 5	Demonstrate knowledge of these concepts: basic accounting and auditing theory

NO.70 Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.

True

False

NO.71 International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization

True

False

NO.72 Effectively documenting and communicating organizational hierarchies, including the proper flow of information, can be a helpful tool in preventing fraud

True

False

NO.73 Open-door management policies are a fraud prevention mechanism that addresses which leg of the Fraud Triangle?

Opportunity

Willingness

Lack of integrity

Pressure

NO.74 According to modern criminological studies, which of the following is the determinant aspect of white-collar crime?

Cultural ties

Criminal history

Organizational opportunity

Social class

NO.75 To be in compliance with the ACFE Code of Professional Ethics, fraud examiners must have:

A Sufficient skill and knowledge to recognize when additional training or expert guidance is required

An expert level of experience for every circumstance that might be encountered in a fraud examination

An expert level of knowledge for every circumstance that might be encountered in a fraud examination

Sufficient resources to obtain the training needed to become an expert on all facets of fraud examinations

NO.76 To address an employee’s consistent failure to meet deadlines, a manager removes the employee’s ability to work from home This is an example of what type of behavioral response?

Positive reinforcement

Negative reinforcement

Punishment

None of the above

NO.77 The Institute of Internal Auditors’ (IIA) International Standards for the Professional Practice of Internal Auditing states that

The internal auditor must apply the skill and care of an expert whose primary responsibility is investigating fraud

The internal auditor must apply the skill and care of an expert whose primary responsibility is detecting fraud.

The internal auditor must apply the skill and care of an unbiased, infallible audit professional.

The internal auditor must apply the skill and care of a reasonably prudent and competent internal auditor

NO.78 According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:

The continued pressures of a culture that rewards affluence and success

The economy’s increased reliance on credit

The decrease in funds available from government assistance programs

The increased opportunity for wrongdoing as a result of advancing information technologies

NO.79 In Ihe context of fraud examination, integrity requires all of the following EXCEPT:

An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong

Subordination of desires for personal gain to the interests of clients, employers, and the public

Independence of mental attitude

Avoidance of differences of opinion

NO.80 Gray, an independent Certified Fraud Examiner (CFE). was hired by Green president of the ABC Corporation, to investigate allegations that one oi ABC s employees is taking kickbacks. During the investigation. Gray learns that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:

Tell the company’s board of directors about Green

Report Green to law enforcement.

Resign from the engagement

Not disclose the information about Green.

NO.81 Employees should be kepi unaware that management is watching for lifestyle and behavior changes in staff members that might indicate fraud

True

False

NO.82 Which of the following principles of corporate governance pertains to the duty of the organization to act in the best interest of society?

Responsibility

Fairness

Transparency

Accountability

NO.83 The objective of anti-fraud controls is to:

Completely eliminate residual fraud risk

Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk

Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.

Completely eliminate inherent fraud risk

NO.84 Black, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination. He did not find fraud, but. in Black’s opinion, the controls he examined were deficient. Under the ACFE Code of Professional Ethics. Black is not permitted to express his opinion on the deficient controls.

True

False

NO.85 Which of the following is NOT a factor that directors and management should consider when developing a corporate governance framework for an organization?

The legal and regulatory environment in which the organization operates

The ability of the framework to remain static during changes in the corporate landscape

The organization’s ethical environment

The organization’s cultural environment

NO.86 Glend
a. an internal auditor, and Brldgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies. Glenda has just been told that she will be the lead on the company’s fraud risk assessment. During the fraud risk assessment. Glenda should:

Confront Bridgette about the disagreements and discuss how they increase the department’s risk of fraud.

Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department.

Automatically designate the accounts receivable department as a high-risk area.

Have someone else perform the fraud risk assessment work related to the accounts receivable department’s activities.

NO.87 As part of her audit of ABC Corp . Rachel, a CPA. is identifying the risks of material misstatement due to fraud As part of this task, she should evaluate any unexpected relationships that she identified in performing analytical procedures.

True

False

NO.88 According to Steve Albrecht’s research,______is the most common personal characteristic motivating fraudsters, and ________ is the most common organization-environment factor motivating fraudsters.

High personal debt; lack of separation of duties

Revenge: too much trust in key employees

Living beyond their means, too much trust in key employees

Desire for recognition, lack of separation of duties

NO.89 Which of the following is an example of organizational crime?

A salesman offering bribes to secure a contract

An accounting clerk forging company checks to herself

A doctor conspiring with patients to Tile false health care insurance claims

Management of several construction companies engaging In bid rigging

NO.90 In the area of criminological theory, deterrence is the theory that tries to prevenl crime by using the threat of criminal sanctions.

True

False