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

1. 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:

A) Use a checklist of initiatives to make sure all the elements of a strong tone at the lop are in place
B) Visibly adhere to the same set of ethics policies that is required of all employees
C) All of the above
D) Create an environment in which employees are dissuaded from challenging management's decisions

2. Which of the following Is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance?

A) Risk tolerance
B) Governance and culture
C) Operating environment
D) Independent monitoring

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

A) 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.
B) 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.
C) 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.
D) All of the above are violations

4. Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance?

A) Risk tolerance
B) Compliance
C) Review and revision
D) Event avoidance

5. Which of the following statements regarding recommended vendor due diligence procedures is MOST ACCURATE?

A) An organization should request that new vendors complete a questionnaire about their background immediately after signing a contract with them.
B) An organization should perform audits of potential vendors before agreeing to conduct business with them.
C) An organization should ensure that vendors have their own ethics and compliance program before engaging in any transactions with them.
D) An organization should avoid revealing that it is seeking information about potential vendors prior to starting its relationship with them.

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