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

1. Which of the following components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance refers to an organization's ability to continually assess how well its enterprise risk management (ERM) capabilities and practices have increased value over time and how they will continue to drive value for the organization?

A) Review and revision
B) Strategy and objective-setting
C) Risk tolerance
D) Governance and culture

2. Gray, an independent Certified Fraud Examiner (CFE), was hired by Green, president of the ABC Corporation, to investigate allegations that one of ABC's employees is taking kickbacks. During the investigation. Gray teams that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:

A) Resign from the engagement
B) Report Green to law enforcement
C) Tell the company's board of directors about Green.
D) Not disclose the information about Green.

3. Which of the following is the MOST EFFECTIVE way for management to respond to incidents of fraud within an organization?

A) Maintaining a policy that allows employees one warning before they are terminated for committing fraud
B) Keeping all known incidents of fraud private to protect the identities of parties involved.
C) Emphasizing to all employees that the company maintains a policy of zero tolerance for fraud.
D) Punishing frauds only if they have a significant financial impact.

4. Management at Alpha Company is developing a corporate compliance program. To ensure that the program will be effective, management should both incentivize employees for their compliance and discipline them for any violations.

A) True
B) False

5. Which of the following statements is TRUE according to rational choice theory?

A) Crime originates from a rational and conscious decision made by the perpetrator in order to receive an intended benefit.
B) Crime can be deterred by decreasing the personal risk to potential perpetrators.
C) Crime can be deterred by increasing the potential for financial gain for the perpetrator.
D) Crime originates from the application of excessive pressure and influence on the perpetrator by external sources.

Solutions: