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

Question 1

Which of the following is one of the recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

A. Shareholder oversight of internal controls B. A mandatory independent compensation committee C. A written charter for management D. Adequate audit committee resources and authority

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Correct Answer: D Vote an answer

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Question 2

In the context of a fraud examination, integrity requires which of the following?

A. Prioritization of desires for personal gain over the interests of clients B. The ability to conceal errors to preserve the reliability of the work performed C. A well-developed sense of moral philosophy and the ability to distinguish right from wrong D. Avoidance of differences of opinion on all material matters

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Correct Answer: C Vote an answer

Question 3

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

A. It facilitates practical enforcement and profession-wide Internal discipline. B. It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles C. It replaces the need for individuals to consult their own conscience. D. It serves as a reference and benchmark for ethical guidance

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Correct Answer: C Vote an answer

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Question 4

(Danielle is drafting a report containing the results of her company's fraud risk assessment process. To be MOST EFFECTIVE, Danielle's report should:)

A. Contain a comprehensive list of the team's suggested responses for each risk identified. B. Thoroughly explain every inherent and residual fraud risk identified during the risk assessment process. C. Be delivered in a way that aligns with management's preferred communication style. D. Reflect the assessment team's subjective opinions that were formed during the assessment.

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Correct Answer: C Vote an answer

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Question 5

According to ACFE research, which of the following is TRUE regarding the three major categories of occupational fraud?

A. Asset misappropriation schemes are the most common category of occupational fraud. B. Financial statement fraud schemes are the most common category of occupational fraud. C. Identity theft is both the most common and costliest category of occupational fraud. D. Corruption schemes are the costliest category of occupational fraud.

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Correct Answer: A Vote an answer

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Question 6

Which of the following statements about the effects of financial crime is MOST ACCURATE?

A. The existence of financial crime at an organization usually leads to individuals making additional investments in the company due to low stock prices. B. The occurrence of financial crime at an organization often results in a decrease in employee productivity due to concerns about job security. C. The discovery of financial crime at an organization often leads to increased public confidence in the organization due to its effective detection measures. D. The damage that financial crime causes to an organization's reputation usually results in a measurable direct cost to the organization and its financial well-being.

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Correct Answer: B Vote an answer

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Question 7

(According to Diane Vaughan, which of the following factors increases an organization's inherent inclination toward committing crime?)

A. Employees do not feel a sense of long-term loyalty due to the lack of a retirement plan and employee benefits. B. Employees are encouraged to develop professional skills that can be applied in other positions. C. Management frequently transfers employees to new roles and requires long working hours. D. Management separates employee performance goals from company performance goals.

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Correct Answer: C Vote an answer

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Question 8

Eliece, a Certified Fraud Examiner (CFE), and Jewel are employees at Silver Inc. Jewel informs Eliece that she has knowledge of a potential financial statement fraud but does not feel comfortable sharing this information unless Eliece can promise that she will keep it confidential. How should Eliece respond?

A. Eliece should tell Jewel that she will try to keep the information as confidential as possible but she might have an ethical obligation to inform their employer. B. Eliece should encourage Jewel to report the information to law enforcement because she cannot agree to Jewel's request. C. Eliece should promise Jewel that she will keep the information confidential even though she knows that she will likely be unable to keep that promise. D. Eliece should immediately contact management at Silver Inc. to provide information about her conversation with Jewel and her request for confidentiality.

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Correct Answer: A Vote an answer

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Question 9

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

A. Riva, a CFE, uncovered material internal control deficiencies that were material but unrelated to the kickback scheme she was investigating. In her final report to management, Riva included information about the deficiencies despite their being unrelated to the situation she was hired to investigate. B. Derrick, a CFE, was hired by a client to conduct a fraud examination but found nothing abnormal. A year later, he received a court order to provide the client ' s file to the court. Derrick complied with the court order despite not having the client ' s authorization to provide the file. C. Dee, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company.
Because she rushed to complete the investigation, she overlooked key items of evidence and failed to uncover a fraud scheme. D. All of the above are violations.

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Correct Answer: C Vote an answer

Question 10

A report by a fraud examiner is privileged from disclosure by anyone other than the client.

A. True B. False

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Correct Answer: B Vote an answer

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Question 11

According to the Committee of Sponsoring Organizations of the Treadway Commission ' s (COSO) Internal Control- Integrated Framework (the Framework), there are five interrelated components of a company ' s internal control. Which of the following is NOT among these five components?

A. Risk assessment B. Monitoring C. Ethical culture D. Control activities

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Correct Answer: C Vote an answer

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