[Aug 31, 2022] Free ACFE CFE-Fraud-Prevention-and-Deterrence Exam Questions & Answer [Q27-Q49]

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[Aug 31, 2022] Free ACFE CFE-Fraud-Prevention-and-Deterrence Exam Questions and Answer

Verified CFE-Fraud-Prevention-and-Deterrence dumps Q&As Latest CFE-Fraud-Prevention-and-Deterrence Download

QUESTION 27
In Ihe context of fraud examination, integrity requires all of the following EXCEPT:

An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong

Subordination of desires for personal gain to the interests of clients, employers, and the public

Independence of mental attitude

Avoidance of differences of opinion

QUESTION 28
Which of the following is NOT a purpose served by a professional organization’s code of conduct?

It replaces the need for individuals to consult their own conscience.

It facilitates practical enforcement and profession-wide Internal discipline.

It serves as a reference and benchmark for ethical guidance

It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles

QUESTION 29
According to the results of behavioral studies, such as those conducted by B. F. Skinner, application of punishment to undesired behavior typically results in which of the following?

increase in the occurrence of the undesired behavior

No effect on the occurrence of the undesired behavior

Temporary suppression of the undesired behavior

Permanent suppression of the undesired behavior

QUESTION 30
Which of the following is among the audit committee s primary responsibilities related to fraud risk management?

Understanding how internal and external audit strategies address fraud risk

Designing the fraud risk management program

Punishing fraud perpetrators discovered through fraud risk management activities

Implementing the fraud risk management program

QUESTION 31
Which of the following statements is FALSE?

Controls are not effective in preventing theft and fraud If those at risk do not know of their presence

Most experts agree that it is harder to detect frauds than to prevent them

Educating employees about company hotlines and reporting programs increases their perception of detection

Conducting covert audits is among the most effective fraud prevention methods

QUESTION 32
Which of the following Is NOT considered a conflict of Interest that Is prohibited under the ACFE Code of Professional Ethics?

Undertaking an engagement that decreases the fraud examiner’s ability to perform their duties for their full-time employer

Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner’s ownership interest is disclosed

Undertaking engagements for both sides in a case of an alleged product substitution scheme

Accepting an assignment to secretly infiltrate the fraud examiner’s employing organization and transmit inside information to another party

QUESTION 33
Glenda. an internal auditor, and Bridgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies Glenda has just been told that she will be the lead on the company s fraud risk assessment. During the fraud risk assessment. Glenda should:

Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department

Automatically designate the accounts receivable department as a high-risk area

Confront Bridgette about the disagreements and discuss how they increase the departments risk of fraud

Have someone else perform the fraud risk assessment work related to the accounts receivable departments activities

QUESTION 34
XYZ. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that XYZ is subject to?

XYZ must comply with the various laws and regulations in the countries in which it operates

XYZ is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.

XYZ is required to comply with G20’OECD Principles of Corporate Governance.

XYZ is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions

QUESTION 35
Which of the following is TRUE regarding government auditors’ responsibilities to report evidence of potential fraud uncovered during an audit of a public-sector organization’s financial statements?

All government auditors maintain the same requirements for reporting evidence of potential fraud uncovered during a public-sector financial statement audit.

Government auditors are legally prohibited from reporting evidence of potential fraud to any parties outside the organization being audited.

Government auditors’ reporting requirements pertaining to fraud are substantially the same as those for external auditors in the private sector.

The requirements for government auditors to report evidence of potential fraud depend on the jurisdiction and the specific audit mandate.

QUESTION 36
Stevens, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination at ABC Company. His examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently, ABC’s management asked Stevens to state in his official examination report that the organization is free of fraud as a means of assuring the board of directors that the company’s anti-fraud controls were effective. Under the ACFE Code of Professional Ethics. Stevens is permitted to comply with management’s request based on the findings of his examination.

True

False

QUESTION 37
Which of the following is FALSE regarding a fraud risk assessment?

The designation of an area as being high risk does not conclusively mean that fraud is occurring there

The objective of the assessment is to provide an estimate of the organization s fraud losses

The assessment should be used to improve employee fraud awareness

The assessment team should consider how employees behave as part of its assessment

QUESTION 38
According to the 2018 Report to the Nations.___________schemes are the most common form of occupational fraud, while_________schemes are the costliest form of occupational fraud

Financial statement fraud, corruption

Asset misappropriation; financial statement fraud

Asset misappropriation; corruption

Corruption; asset misappropriation

QUESTION 39
Which of the following is FALSE regarding the fraud risk assessment learn?

The team members should have experience in gathering and eliciting information

The team members might include both internal and external sources.

The team size should be limited to a maximum of three individuals

The team should consist of individuals with diverse knowledge, skills, and perspectives

QUESTION 40
Which of the following best describes the purpose of The National Commission on Fraudulent Financial Reporting (the Treadway Commission)?

Studying the effect of the threat of vicarious liability on the behavior of corporate executives

Designing a model corporate compliance program

Defining the responsibility of the auditor in preventing and detecting fraud

Determining the specific requirements of the Principles of Risk Management

QUESTION 41
Management at ABC Corp. is assessing the company’s ethical tone and how it affects the organization’s fraud risk. To most effectively reinforce an anti-fraud culture, management should:

Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place

Create an environment in which employees feel safe challenging management’s decisions

implement two separate sets of ethics policies, one for management and one for employees

All of the above

QUESTION 42
According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:

The continued pressures of a culture that rewards affluence and success

The economy’s increased reliance on credit

The increased constraints of the regulatory environment for businesses

The increased opportunity for wrongdoing as a result of advancing information technologies

QUESTION 43
Which of the following is NOT one of the three general approaches used to control corporate crime?

Strong intervention of the government

Voluntary changes in corporate attitudes and structure

Consumer action to force change

Media blacklisting of the organization

QUESTION 44
The availability of suitable targets, absence of capable guardians, and presence of motivated offenders are the three most important elements that influence crime according to which of the following criminological theories?

Conditioning theory

Routine activities theory

Rational choice theory

Social control theory

QUESTION 45
According to the 2020 Report to the Nations, which of the following is the MOST COMMON method by which frauds are detected?

Internal audit

Confession

Tips

External audit

QUESTION 46
During the course of a fraud examination. Stefan, an employee of Acme Inc., approaches Marten, a Certified Fraud Examiner (CFE) and fellow employee of Acme, and tells him that he knows of a major fraud being committed by the chief financial officer (CFO). However. Stefan says he can only provide details if Marten promises him absolute confidentiality. How should Marten respond?

Agree that the information will be held in confidence, even though Marten knows it will not be

Take Stefan’s request straight to Acme Inc.’s management

Tell Stefan that he will try to keep the information as confidential as possible

Not agree to the request for confidentiality

QUESTION 47
Which of the following is an example of organizational crime?

doctor conspiring with patients to file false health care insurance claims

A salesman offering bribes to secure a contract

An accounting clerk forging company checks to herself

Management of several construction companies engaging in bid rigging

QUESTION 48
Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

Rodrigo. a CFE. uncovered several material Internal control deficiencies unrelated to the Kickback scheme he was Investigating. In his final report to management. Rodrigo included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

Vivian, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she was in a hurry to complete the investigation, she overlooked key items of evidence and ended up failing to uncover a major fraud scheme.

Tom, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss. A year later, he received a court order to provide the client’s file to the ordering court. Tom complied with the court order, even though he did not have the client’s authorization to do so.

All of the above are violations.

QUESTION 49
International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization

True

False