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

1. Which of the following mechanisms can help alleviate the pressure on employees to commit fraud?

A) Employee support programs
B) Discipline policies
C) Employee monitoring software
D) Background check policies

2. Which of the following statements Is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

A) Fraud examiners should form the engagement hypothesis without regard to the nature of the assignment
B) Fraud examiners should not relax their skeptical attitudes under any circumstances.
C) Professional skepticism involves maintaining a mindset that no fraud has occurred
D) Professional skepticism can be dispelled only by evidence

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

A) The fraud risk assessment is most effective when management's influence on the process is limited
B) The fraud risk assessment can be effectively conducted by people inside or outside of the organization.
C) To ensure the independence of the team members, a fraud risk assessment must be conducted by a consultant or other external party.
D) 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.

4. The internal auditor's fraud-related responsibilities include which of the following?

A) Overseeing management's actions to manage fraud risks
B) Establishing and maintaining effective anti-fraud controls at a reasonable cost
C) Evaluating indicators of fraud and deciding whether any further action is necessary or whether an investigation should be recommended
D) Obtaining reasonable assurance that the organization's financial statements are free of material misstatements caused by fraud

5. Which of the following Is FALSE regarding a fraud risk assessment?

A) The assessment should be used to improve employee fraud awareness.
B) The designation of an area as being high risk does not conclusively mean that fraud is occurring there.
C) The assessment team should consider how employees behave as part of Its assessment
D) The objective of the assessment is to provide an estimate of the organization's fraud losses.

Solutions: