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

1. To reinforce an anti-fraud culture, it is BEST for an organization's management to:

A) Use a checklist of initiatives to ensure that all the elements of a strong corporate culture are in place.
B) Discipline any employees who publicly express their frustration regarding organizational policies.
C) Require senior leaders to follow the same ethics policies that are in place for all staff-level employees.
D) Discourage employees from questioning their immediate supervisor's actions or decisions if they have concerns.

2. Which of the following statements is TRUE according to rational choice theory?

A) Crime originates from an instinctual response to external stimuli without any rational or conscious decision by the perpetrator.
B) Crime originates from a rational and conscious decision made by the perpetrator in order to receive an intended benefit.
C) Crime can be deterred by decreasing the personal risk to potential perpetrators.
D) Crime can be deterred by increasing the personal benefit to potential perpetrators.

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

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

4. 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) Control activities
C) Monitoring
D) Ethical culture

5. Ian is drafting a report containing the results of his company's fraud risk assessment process. To be MOST EFFECTIVE, Ian's report should:

A) Contain a detailed, comprehensive list of every assessment finding.
B) Focus on the findings that will make the most impact on the company's fraud risk management efforts.
C) Include a complete list of recommended actions for management to take to address all identified risks.
D) Reflect the assessment team's subjective perspective regarding the risks identified.

Solutions: