ACFE Certified Fraud Examiner CFE-Fraud-Prevention

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

1. Rhys, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination at Marvel Company. His examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently, Marvel's management asked Rhys to state in his official examination report that the company is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. Which of the following is TRUE regarding the ACFE Code of Professional Ethics in this situation?

A) The ACFE Code of Professional Ethics allows Rhys to comply with management's request without limitations.
B) The ACFE Code of Professional Ethics allows Rhys to comply with management's request only if he can find another CFE to co-sign his report.
C) The ACFE Code of Professional Ethics allows Rhys to comply with management's request only if the company has liability insurance to cover an incorrect assertion.
D) The ACFE Code of Professional Ethics absolutely prohibits Rhys from complying with management's request.

2. The internal auditor's fraud-related responsibilities include which of the following?

A) Overseeing management's actions to manage fraud risks
B) Reporting to regulators regarding the entity's vulnerability to fraud
C) Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program
D) Attesting that the organization's financial statements are free of material misstatements caused by fraud

3. Which of the following statements Is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

A) Fraud examiners should form the engagement hypothesis without regard to the nature of the assignment
B) Fraud examiners should not relax their skeptical attitudes under any circumstances.
C) Professional skepticism can be dispelled only by evidence
D) Professional skepticism involves maintaining a mindset that no fraud has occurred

4. Andrew, an internal auditor, is formalizing a process to identify and evaluate threats to his company's ability to achieve its objectives. Andrew's initiative BEST pertains to whichcomponent of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control-- Integrated Framework?

A) Control environment
B) Control activities
C) Risk assessment
D) Monitoring

5. Which of the following is one of the three general methods used to control corporate crime?

A) Pressure from changes in the competitive environment
B) Loss of funding from financial institutions
C) Lowered regulatory enforcement by the government
D) Demands from consumers to change

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