ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence - CFE-Fraud-Prevention-and-Deterrence FREE EXAM DUMPS QUESTIONS & ANSWERS]

Question 1

According to the routine activities theory, all of the following are important elements that influence crime EXCEPT:

A. The absence of capable guardians B. The presence of motivated offenders C. The lack of accountability for misdeeds D. The availability of suitable targets

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Correct Answer: C Vote an answer

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Question 2

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

A. Withdrawal of financial institution funding B. Voluntary changes in corporate attitudes and structure C. Consumer action to force change D. Strong intervention of the government

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Correct Answer: A Vote an answer

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Question 3

Which of the following is a TRUE statement regarding fraud risks?

A. Residual risks are risks that are present before the effect of internal controls. B. Inherent risks are risks that remain after efforts are made to mitigate fraud risk. C. The objective of anti-fraud controls is to reduce the residual fraud risk to a level that is significantly lower than the inherent fraud risk. D. The objective of anti-fraud controls is to completely eliminate the inherent fraud risk.

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Correct Answer: C Vote an answer

Question 4

Professional auditing standards require that auditors incorporate an " element of unpredictability " in the selection of auditing procedures to be performed.

A. True B. False

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Correct Answer: A Vote an answer

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Question 5

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

A. The program must include mechanisms to monitor and identify breaches in compliance. B. There should be measures in place to address failures in the design or operation of anti-fraud controls, as well as fraud occurrences C. The responsibility of handling suspected incidents of noncompliance should be delegated to someone outside of the company. D. Formal sanctions for intentional noncompliance should be well-publicized throughout the company

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Correct Answer: C Vote an answer

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Question 6

(Jacques, an internal auditor, and Brenna, the company's travel and expense manager, have had several disagreements about employee expense limits and policies. Jacques has just been told that he will lead the company's fraud risk assessment. During the fraud risk assessment, Jacques should:)

A. Confront Brenna about the disagreements and discuss how they increase the organization's risk of fraud. B. Request that someone else perform the fraud risk assessment work related to employee travel and expenses. C. Include his disagreements with Brenna as a factor when assessing the risk of fraud in the employee travel and expense function. D. Automatically designate the employee travel and expense function as a high-risk area.

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Correct Answer: B Vote an answer

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Question 7

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

A. The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them B. The Principles are intended to be applicable in developed economies but not in emerging markets. C. The Principles state that an entity ' s corporate governance framework should discourage active cooperation between corporations and stakeholders in creating wealth. D. The Principles state that an entity ' s corporate governance framework should ensure the equitable treatment of all shareholders.

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Correct Answer: D Vote an answer

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Question 8

Fraud risks related to corruption include all of the following EXCEPT;

A. Payment of bribes B. Receipt of kickbacks C. Espionage by competitors D. Aiding and abetting vendor fraud

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Correct Answer: C Vote an answer

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Question 9

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

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Correct Answer: D Vote an answer

Question 10

Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?

A. ISA 240 provides guidance regarding the auditor ' s responsibility to consider fraud in an audit of financial statements. B. ISA 240 creates requirements for the board of directors regarding the establishment of a holistic fraud risk management program. C. ISA 240 establishes auditors as being primarily responsible for implementing anti-fraud internal controls within an organization. D. ISA 240 requires auditors to effectively educate the staff about the risk of fraud within the audited organization.

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Correct Answer: A Vote an answer

Question 11

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. The majority of fraudsters have been previously punished by an employer for a fraud-related offense C. The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is complaints about management. D. Mote occupational frauds are committed by men than by women

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Correct Answer: D Vote an answer

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Question 12

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 facilitates continuous improvement. B. The program is static and consistent, even during times of organizational change. C. The program takes human and cultural factors into account. D. The program is customized and proportionate to the organization ' s operations and objectives.

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Correct Answer: B Vote an answer