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

1. The findings in the 2020 Report to the Nations include which of the following?

A) The median losses caused by executives are lower than those caused by staff-level employees
B) Mote occupational frauds are committed by men than by women
C) The majority of fraudsters have been previously punished by an employer for a fraud-related offense
D) The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is complaints about management.

2. Josie is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While conducting her audit procedures, she discovers evidence that Carissa, the company's chief financial officer, has been fraudulently manipulating the financial statements. Which of the following is Josie's BEST response to these findings?

A) Josie should immediately report her findings to the local media.
B) Josie should report her findings to those charged with governance of the organization.
C) Josie should not disclose her findings to anyone until after she has conducted a full investigation.
D) Josie should confront Carissa with her audit findings and try to get a confession.

3. "Crimes of the Middle Classes" finds that all the following factors have contributed to the rising problem of economic crime EXCEPT:

A) The economy's decreased reliance on credit and a decline in personal debt.
B) Advancement of information technologies increasing the opportunity for misconduct.
C) The increase in funds available from government assistance programs.
D) Media sources sending the message that no one has to settle for second best.

4. During a fraud risk assessment, the assessment team determines that it would like to observe the interactions among several employees as they collectively discuss the organization's current fraud awareness training. Which of the following techniques would be MOST HELPFUL for the team to use in gathering this information?

A) Surveys
B) Interviews
C) Focus groups
D) Anonymous feedback mechanisms

5. Daniela, an independent Certified Fraud Examiner (CFE), was hired by Charles, executive director of a nonprofit organization, to investigate a straightforward embezzlement case.
Duringthe investigation, Daniela learns that Charles is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Daniela should:

A) Not disclose the information about Charles.
B) Tell the nonprofit's board of trustees about Charles
C) Resign from the engagement.
D) Report Charles to law enforcement

Solutions: