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

1. Which of the following statements about the fraud risk assessment process Is MOST ACCURATE?

A) To ensure the independence of the team members, a fraud risk assessment must be conducted by a consultant or other external party.
B) The fraud risk assessment is most effective when management's influence on the process is limited
C) If the individuals conducting the fraud risk assessment truly believe that fraud could not happen at the organization, then the assessment process should reflect that belief.
D) The fraud risk assessment can be effectively conducted by people inside or outside of the organization.

2. Warren wants to decrease the amount of cash register discrepancies among the cashiers at his small business. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Warren to encourage the cashiers to reduce their discrepancies and keep their cash drawers balanced?

A) Demote employees who continue to have reconciliation discrepancies.
B) Publicly praise employees every time their cash drawers are balanced.
C) Deduct an hour's worth of pay for anyone whose cash drawer is not perfectly reconciled each day.
D) Take away an hour of paid time off from an employee each time their cash drawer is not balanced.

3. While, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination She did not find fraud, but. In White's opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence of fraud Under the ACFE Code of Professional Ethics.
White may include her opinion on the controls in her report to management.

A) True
B) False

4. According to Silk and Vogel's research, which of the following is one of the ways that businesses rationalize illegal conduct?

A) Government regulations are justified because the additional costs of regulations and bureaucratic procedures increase government profits.
B) Corporate violations that involve large sums of money are often spread among so many organizations that each gains very little individually.
C) Government regulation is unnecessary because the matters being regulated are unimportant.
D) Violations are caused by innocent errors in judgment rather than economic necessity.

5. A company implements mandatory job rotation within its accounting department. What fraud risk benefit does this provide?

A) It eliminates all payroll fraud
B) It discourages independent review
C) It helps expose irregularities when duties change hands
D) It increases opportunities for concealment

Solutions: