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

1. In the area of criminological theory, deterrence is the theory that tries to prevenl crime by using the threat of criminal sanctions.

A) True
B) False

2. Green, a Certified Fraud Examiner (CFE). had an ethical dilemma regarding her business contract with her professional partners. Which of the following sources of guidance would be considered the lowest level of reference to help Green in determining the most ethical course of action?

A) Guidance from her family and friends
B) Philosophical principles related to ethics
C) The ACFE Code of Professional Ethics
D) Contract law

3. To address an employee's consistent failure to meet deadlines, a manager removes the employee's ability to work from home This is an example of what type of behavioral response?

A) None of the above
B) Positive reinforcement
C) Negative reinforcement
D) Punishment

4. 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) Implementing additional preventive and detective controls
B) Purchasing fidelity insurance to protect against the associated risk of loss
C) Discontinuing the underlying activity completely
D) Deciding not to implement any responsive measures

5. Which of the following is TRUE regarding the internal audit function's reporting responsibilities pertaining to fraud?

A) The internal audit function is permitted, but not required, to periodically report about the organization's fraud risks to senior management and the board of directors.
B) The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence.
C) The internal audit function should discuss how and when to report fraud-related issues with senior management and the board of directors before such issues arise.
D) The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.

Solutions: