Summer Special Sale Limited Time 60% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: 713PS592

CFE-Fraud-Prevention-and-Deterrence Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Questions and Answers

Questions 4

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines____________ as "a process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance."

Options:

A.

Corporate compliance

B.

Fraud risk management

C.

Risk assessment

D.

Internal control

Buy Now
Questions 5

Which of the following is TRUE regarding corporate governance?

Options:

A.

Fraud risk management is considered to be the foundation of effective corporate governance

B.

Corporate governance's primary purpose is to ensure the accuracy of the organization's financial reports

C.

Effective corporate governance practices are most necessary in an organization in which the owners are also the individuals responsible for setting the corporate strategy.

D.

An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization

Buy Now
Questions 6

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:

Options:

A.

The continued pressures of a culture that rewards affluence and success

B.

The economy's increased reliance on credit

C.

The increased constraints of the regulatory environment for businesses

D.

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

Buy Now
Questions 7

Which of the following Is NOT a way that an organization's fraud risk assessment should be Incorporated Into the audit process?

Options:

A.

It should be used to assess whether there is a moderate-to-high risk of management overriding controls within the moderate-to-high fraud risk areas.

B.

It should be used to replace the auditor's own identification and assessment of fraud risks.

C.

it should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.

D.

It should be used to design audit tests to evaluate whether the controls are operating effectively.

Buy Now
Questions 8

Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

Options:

A.

Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

B.

Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.

C.

Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file. Susan complied with the court order, even though she did not have the client's authorization to do so.

D.

All of the above are violations

Buy Now
Questions 9

Which of the following Is FALSE regarding proactive fraud auditing procedures?

Options:

A.

Fraud audit procedures should be designed to incorporate an element of surprise

B.

Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods

C.

Fraud assessment questioning techniques are most appropriately used as part of the normal audit process

D.

Implementing proactive fraud audit procedures demonstrates management's intention to aggressively look for possible fraudulent conduct

Buy Now
Questions 10

Which of the following Is TRUE regarding the reporting of the fraud risk assessment results?

Options:

A.

The fraud risk assessment report should be delivered in a style most suited to the language of the business

B.

The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding

C.

A fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified

D.

All of the above

Buy Now
Questions 11

During an external audit of an organization's financial statements. Elena, the external auditor, uncovers significant internal control deficiencies at the audit client's organization. She believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Elena do with regard to these findings?

Options:

A.

Elena should suspend the audit and begin a new audit focused on the internal controls

B.

Elena should report the findings in writing to the appropriate law enforcement agencies.

C.

Elena should provide a written communication about the findings to senior management.

D.

Elena should work independently to correct the underlying internal control deficiency.

Buy Now
Questions 12

The findings in the 2020 Report to the Nations include which of the following?

Options:

A.

The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is complaints about management.

B.

Mote occupational frauds are committed by men than by women

C.

The median losses caused by executives are lower than those caused by staff-level employees

D.

The majority of fraudsters have been previously punished by an employer for a fraud-related offense

Buy Now
Questions 13

Which of the following is among the board of directors' primary responsibilities related to fraud risk management?

Options:

A.

Overseeing the organization's fraud risk management activities

B.

Designing the fraud risk management program

C.

Punishing fraud perpetrators discovered through fraud risk management activities

D.

Implementing the fraud risk management program

Buy Now
Questions 14

The existence of many specialized departments within a company generally decreases the overall risk of fraud within the organization.

Options:

A.

True

B.

False

Buy Now
Questions 15

According to the results of behavioral studies, such as those conducted by B. F. Skinner, application of punishment to undesired behavior typically results in which of the following?

Options:

A.

increase in the occurrence of the undesired behavior

B.

No effect on the occurrence of the undesired behavior

C.

Temporary suppression of the undesired behavior

D.

Permanent suppression of the undesired behavior

Buy Now
Questions 16

A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?

Options:

A.

In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.

B.

The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.

C.

The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement

D.

The objectives of the audit are likely narrower than those of a private-sector financial statement audit.

Buy Now
Questions 17

Stevens, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination at ABC Company. His examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently, ABC's management asked Stevens to state in his official examination report that the organization is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. Under the ACFE Code of Professional Ethics. Stevens is permitted to comply with management's request based on the findings of his examination.

Options:

A.

True

B.

False

Buy Now
Questions 18

In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.

Options:

A.

True

B.

False

Buy Now
Questions 19

Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but It allows exceptions for unknowing violations of the law.

Options:

A.

True

B.

False

Buy Now
Questions 20

Which of the following is TRUE regarding prosecutions of white-collar criminals?

Options:

A.

Only a small percentage of perpetrators are punished when an organization deals with a fraud case internally.

B.

Most fraud cases are only handled internally and are not referred to law enforcement for prosecution

C.

The primary reason organizations decline to prosecute fraud cases is a belief that their internal discipline methods are sufficient

D.

When fraud cases are handled internally, an employee is more likely to be suspended or put on probation than to be terminated for their crime.

Buy Now
Questions 21

For its compliance program to be effective, an organization must promote the program through appropriate incentives for compliance.

Options:

A.

True

B.

False

Buy Now
Exam Name: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam
Last Update: Jun 22, 2024
Questions: 141

PDF + Testing Engine

$66.4  $165.99

Testing Engine

$46  $114.99
buy now CFE-Fraud-Prevention-and-Deterrence testing engine

PDF (Q&A)

$42  $104.99
buy now CFE-Fraud-Prevention-and-Deterrence pdf