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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:
Management at ABC Company wants to transfer one of the risks identified during the company ' s fraud risk assessment process. Which of the following actions would be MOST APPROPRIATE to support this response?
- A. Discontinuing the underlying activity completely
- B. Purchasing fidelity insurance to protect against the associated risk of loss
- C. Deciding not to implement any responsive measures
- D. Implementing additional preventive and detective controls
Correct Answer: B 🗳️
Which of the following Is NOT a way that an organization ' s fraud risk assessment should be Incorporated Into the audit process?
- 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 increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.
- C. It should be used to replace the auditor ' s own identification and assessment of fraud risks.
- D. It should be used to design audit tests to evaluate whether the controls are operating effectively.
Correct Answer: C 🗳️
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Ian is drafting a report containing the results of his company ' s fraud risk assessment process. To be MOST EFFECTIVE, Ian ' s report should:
- A. Focus on the findings that will make the most impact on the company ' s fraud risk management efforts.
- B. Include a complete list of recommended actions for management to take to address all identified risks.
- C. Contain a detailed, comprehensive list of every assessment finding.
- D. Reflect the assessment team ' s subjective perspective regarding the risks identified.
Correct Answer: A 🗳️
Which of the following is one of the four recommendations made by the National Commission on Fraudulent Financial Reporting the Treadway Commission to reduce the probability of fraud in financial reports?
- A. Have a mandatory independent compensation committee.
- B. Develop a written charter for management.
- C. Give shareholders oversight of internal controls.
- D. Have adequate audit committee resources and authority.
Correct Answer: D 🗳️
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Which of the following is TRUE regarding G20/OECD Principles of Corporate Governance (the Principles)?
- A. The Principles are intended to be applicable in developed economies but not in emerging markets.
- B. The Principles state that an entity ' s corporate governance framework should discourage active cooperation between corporations and stakeholders in creating wealth.
- C. The Principles state that an entity ' s corporate governance framework should ensure the equitable treatment of all shareholders.
- D. The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them
Correct Answer: C 🗳️
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