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ACFE CFE-FRAUD-PREVENTION-AND-DETERRENCE - Questions & Answers

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Question 1
Single choice

Maria conducted a fraud examination that led to a valid confession of guilt from Rita. In Maria's verbal report to her superiors, she stated that, in her opinion. "Rita is guilty of embezzlement." Maria has just violated the ACFE Code of Professional Ethics.

A.

True

B.

False

Question 2
Single choice

According to G20/OECD Principles of Corporate Governance (the Principles):

A.

Governments should have in place a corporate governance framework that promotes transparent and fair markets

B.

Companies should disclose all financial information to investors, regardless of the cost burden of the disclosure

C.

A corporate governance framework should focus on the rights of shareholders but does not need to include the rights of other organizational stakeholders

D.

All of the above

Question 3
Single choice

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."

A.

Fraud risk management

B.

Corporate compliance

C.

Internal control

D.

Risk assessment

Question 4
Single choice

Which of the following is an example of organizational crime?

A.

doctor conspiring with patients to file false health care insurance claims

B.

A salesman offering bribes to secure a contract

C.

An accounting clerk forging company checks to herself

D.

Management of several construction companies engaging in bid rigging

Question 5
Single choice

In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss This response is known as:

A.

Mitigating the risk

B.

Assuming the risk

C.

Avoiding the risk

D.

Transferring the risk

Question 6
Single choice

Independent auditors play a critical role in enhancing the reliability of financial information by financial position and performance in compliance with accepted accounting standards.

A.

True

B.

False

Question 7
Single choice

Which of the following statements regarding white-collar defendants is TRUE?

A.

The lower the offenders' social status, the more likely they are to be imprisoned

B.

They are more likely to be fined than to face prison terms as punishment

C.

They are less likely to insist on a trial than other offenders

D.

All of the above

Question 8
Single choice

The fact that most groups within groups a society have the same ideas of right and wrong greatly assists in the ability to determine the correct ethical decision in a given situation.

A.

True

B.

False

Question 9
Single choice

Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

A.

A request that governments have in place an appropriate framework to support good corporate governance practices

B.

Recognition of the importance of the role of stakeholders in corporate governance

C.

Support for establishing stronger protection for foreign shareholders than for domestic shareholders

D.

Guidance regarding appropriate board structures, responsibilities, and procedures

Question 10
Single choice

Which of the following statements about the fraud risk assessment process is MOST ACCURATE"?

A.

To ensure the independence of the team members a fraud risk assessment must be conducted by a consultant or other external party.

B.

The assessment team must be perceived as independent and objective by others for the assessment to be effective

C.

If the individuals conducting the fraud risk assessment truly believe that fraud could not happen at the organization the assessment process should reflect that belief.

D.

The fraud risk assessment is most effective when management s influence on the process is limited.

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