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ACFE CFE-FRAUD-PREVENTION-AND-DETERRENCE Practice Test Questions ( Updated) – Real Exam Questions & Dumps PDF

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ACFE CFE-FRAUD-PREVENTION-AND-DETERRENCE Sample Questions – Free Practice Test & Real Exam Prep

Question #1

Luis, the internal audit manager for Oak Corporation, is working to formally incorporate the company's fraud risk assessment into its audit process. Which of the following is NOT a way that Oak's audit team should use the fraud risk assessment process and results as part of their audits?

A. To inform the development of audit programs for areas that have been identified as having a high risk of fraud.
B. To confirm whether there is conclusive evidence that fraud is occurring within the company.
C. To validate whether the organization is appropriately managing moderate-to-high fraud risks.
D. To design audit tests to evaluate whether fraud risk controls are operating effectively.

Question #2

Which of the following Is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management—Integrating with Strategy and Performance?

A. Independent monitoring
B. Operating environment
C. Risk tolerance
D. Governance and culture

Question #3

To reinforce an anti-fraud culture, it is BEST for an organization's management to:

A. Use a checklist of initiatives to ensure that all the elements of a strong corporate culture are in place.
B. Require senior leaders to follow the same ethics policies that are in place for all staff level employees.
C. Discourage employees from questioning their immediate supervisor's actions or decisions if they have concerns.
D. Discipline any employees who publicly express their frustration regarding organizational policies.

Question #4

(Which of the following is a responsibility of an organization’s board of directors?)

A. Serving as the intermediary between shareholders and management
A. Serving as the intermediary between shareholders and management
C. Managing the performance of employees charged with executing business activities
D. Electing the company’s shareholders and supervising their decisions and actions

Question #5

According to Steve Albrecht's research,______is the most common personal characteristic motivating fraudsters, and ________ is the most common organization-environment factor motivating fraudsters.

A. High personal debt; lack of separation of duties
B. Revenge: too much trust in key employees
C. Living beyond their means, too much trust in key employees
D. Desire for recognition, lack of separation of duties

Question #6

Which of the following is a TRUE statement regarding the components of the Committee of Sponsoring Organizations of the Treadway Commission’s COSO Internal Control—Integrated Framework the Framework?

A. Ethical culture is one of the primary components of internal control identified in the Framework.
B. Determining the effectiveness of an organization’s internal control system involves assessing whether all of the identified components are operating together in an integrated manner.
C. Determining the effectiveness of an organization’s internal control system involves assessing whether the identified components meet minimum regulatory requirements.
D. The Framework identifies 12 components of internal control that must all be in place for the internal control system to be effective.

Question #7

Aqua Corp.'s board of directors is meeting to discuss fraud risk management within the organization. Which of the following activities is among the board of directors' primary responsibilities related to fraud risk management for the company?

A. Overseeing the organization's fraud risk management activities.
B. Monitoring and proactively improving the fraud risk management program.
C. Performing and regularly updating the fraud risk assessment.
D. Implementing the fraud risk management program throughout the organization.

Question #8

Which of the following scenarios is LEAST LIKELY to be considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics?

A. Lori accepts an assignment to infiltrate her employer and transmit inside information to a competitor.
B. Ren undertakes an external engagement that requires him to work outside the normal work hours of his primary employer.
C. DeVon undertakes engagements for both sides in a case of an alleged fraudulent warranty scheme.
D. Karen accepts an assignment to search for fraud indicators at an organization in which she is an undisclosed partner.

Question #9

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines internal control as:

A. A process implemented to review how well the organization’s risk management capabilities have increased value over time and how they will continue to drive value for the organization.
B. 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.
C. A process involving personnel at all levels of the organization that aims to eliminate all uncertainty and risk while also ensuring the effectiveness of the organization’s strategy.
D. A process aimed at proactively identifying, evaluating, and addressing an organization’s vulnerabilities to fraud by both internal and external sources.

Question #10

Which of the following steps should be incorporated into an organization’s fraud risk assessment strategy to ensure the effectiveness of the fraud risk assessment?

A. Assess the significance of each inherent fraud risk to the organization.
B. Identify and reward the people and departments that are least likely to commit fraud.
C. Determine the ideal number of fraud response protocols that the organization should implement.
D. Solicit stakeholder input to quantify the organization’s greatest fraud risks and total fraud losses.

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