Latest ACFE CFE-Fraud-Prevention Actual Free Exam Questions & Community Discussion, Page 2

Question #15

Baldwin, a Certified Fraud Examiner (CFE), has an ethical dilemma regarding his business contract with his professional partners. Which of the following scenarios demonstrates Baldwin consulting a source of guidance that would be considered the LOWEST level of reference to use for determining the most ethical action to take?

A. Baldwin asking for guidance from his family and friends.

B. Baldwin reading the applicable contract law.

C. Baldwin contemplating philosophical principles related to ethics.

D. Baldwin reviewing the ACFE Code of Professional Ethics.

Discussion 0

Correct Answer: A Vote an answer

Question #16

Black, a Certified Fraud Examiner CFE, was hired to conduct a fraud examination. He did not find fraud, but in Black's opinion, the controls he examined were deficient. Under the ACFE Code of Professional Ethics, which of the following is TRUE?

A. Black may include his opinion on the internal control deficiencies in his report to management because it is a technical matter.

B. Black may include his opinion on the internal control deficiencies in his report to management only if he gets formal approval from the board of directors.

C. Black is not permitted to express his opinion on the internal control deficiencies in his report to management under any circumstances.

D. Black may include his opinion on the internal control deficiencies in his report to management only if he amends his engagement letter.

Discussion 0

Correct Answer: A Vote an answer

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Question #17

Which of the following is included in the G20/OECD Principles of Corporate Governance?

A. A request that governments implement effective internal controls to support good corporate governance practices.

B. A requirement for a corporate governance framework that protects the exercise of management's rights.

C. An emphasis on the importance of timely, accurate, and transparent disclosure mechanisms.

D. Support for the equal treatment of all members of an organization's governing body.

Discussion 0

Correct Answer: A Vote an answer

Question #18

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

A. All of the above are violations

B. Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.

C. Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file.
Susan complied with the court order, even though she did not have the client's authorization to do so.

D. Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

Discussion 0

Correct Answer: A Vote an answer

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Question #19

According to Steve Albrecht's research,______is the most common personal characteristic motivating fraudsters, and ________ is the most common organization-environment factor motivating fraudsters.

A. Revenge: too much trust in key employees

B. High personal debt; lack of separation of duties

C. Desire for recognition, lack of separation of duties

D. Living beyond their means, too much trust in key employees

Discussion 0

Correct Answer: D Vote an answer

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Question #20

Pieter, a manager at Solox Corp., oversees the fraud training for the organization's employees.
He is reviewing the training for the coming year. Which of the following actions should Pieter take to ensure that Solox's employee anti-fraud education program is effective?

A. Include common characteristics that lead individuals to commit fraud.

B. Require the training to only be presented by organizational executives or anti-fraud professionals.

C. Include detailed descriptions of the organization's anti-fraud controls.

D. Restrict training to formal live, in-person sessions required of all full-time, lower-level employees.

Discussion 0

Correct Answer: A Vote an answer

Question #21

Which of the following controls would MOST effectively reduce the risk of fictitious vendors being added to the accounting system?

A. Increasing employee bonuses

B. Annual inventory counts

C. Encrypting vendor payment files

D. Independent review of vendor setup requests with supporting documentation

Discussion 0

Correct Answer: D Vote an answer

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Question #22

A company implements a fraud hotline but does not allow anonymous reporting. What is the MOST likely consequence?

A. Increased reporting rates

B. Elimination of false allegations

C. Reduced employee concerns about retaliation

D. Fewer tips and reduced reporting effectiveness

Discussion 0

Correct Answer: D Vote an answer

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Question #23

According to International Organization for Standardization (ISO) 31000:2018, an effective and efficient risk management program contains all of the following principles EXCEPT:

A. The program is structured and comprehensive.

B. The program is integrated into only high-risk organizational activities.

C. The program is customized and proportionate to the organization's operations and objectives.

D. The program is based upon the best available information.

Discussion 0

Correct Answer: B Vote an answer

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Question #24

According to criminologist Charles McCaghy, which of the following is the most compelling factor behind deviance by organizations?

A. Unethical corporate culture

B. Excessive regulatory requirements

C. Executive failures

D. Profit pressure

Discussion 0

Correct Answer: D Vote an answer

Question #25

Which of the following statements is FALSE regarding an organization's fraud risk management program?

A. The responsibility of handling suspected incidents of noncompliance should be delegated to someone outside of the company.

B. Formal sanctions for intentional noncompliance should be well-publicized throughout the company

C. There should be measures in place to address failures in the design or operation of anti-fraud controls, as well as fraud occurrences

D. The program must include mechanisms to monitor and identify breaches in compliance.

Discussion 0

Correct Answer: A Vote an answer

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Question #26

Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?

A. They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.

B. They state that a corporate governance framework should require disclosure of all financial information to the organization's investors.

C. They assert that a corporate governance framework should ensure the equitable treatment of all the organization's shareholders.

D. They are intended to be applicable in developed economies but not in emerging markets.

Discussion 0

Correct Answer: C Vote an answer

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Question #27

Devon, an employee at Tilly Corp., repeatedly demonstrates a negative attitude when working with other departments. To address this behavior, Devon's manager tells him that he is no longer allowed to lead cross-departmental projects. This is an example of what type of behavioral response?

A. Negative reinforcement

B. Punishment

C. None of the above

D. Positive reinforcement

Discussion 0

Correct Answer: B Vote an answer

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Question #28

Which of the following statements is MOST ACCURATE regarding best practices that organizations can take to protect and support whistleblowers?

A. Organizations should include in their whistleblower policies the specific penalties that people might encounter for refusing to report known misconduct.

B. Organizations should publicize their whistleblower policies and procedures to individuals both inside and outside of the organization.

C. Organizations should implement a clear whistleblower policy that lists every type of misconduct that has ever been reported at the company.

D. Organizations should emphasize that rules regarding whistleblower protections are only intended for lower-level employees who might be more vulnerable to retaliation.

Discussion 0

Correct Answer: B Vote an answer

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