Valid CFE-Fraud-Prevention-and-Deterrence Exam Q&A PDF CFE-Fraud-Prevention-and-Deterrence Dump is Ready (Updated 99 Questions)
Exam Questions and Answers for CFE-Fraud-Prevention-and-Deterrence Study Guide
NEW QUESTION 44
Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but it allows exceptions for unknowing violations of the law
- A. False
- B. True
Answer: A
NEW QUESTION 45
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. Control activities
- B. Monitoring
- C. Ethical culture
- D. Risk assessment
Answer: C
NEW QUESTION 46
Which of the following is FALSE regarding the discussion about the financial statements susceptibility to fraud that auditors are required to have under International Standard on Auditing (ISA) 240?
- A. The audit team should focus solely on how the company's assets could be misappropriated
- B. A The audit team should discuss how management could conceal fraud
- C. The audit team should consider whether the organizational culture might enable the rationalization of fraud
- D. The audit team should consider factors that provide the opportunity for fraud.
Answer: C
NEW QUESTION 47
Which of the following is NOT considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics? )
- A. Undertaking engagements for both sides in a case of an alleged product substitution scheme
- B. Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner's ownership interest is disclosed
- C. Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
- D. Accepting an assignment to secretly infiltrate the fraud examiner s employing organization and transmit inside information to another party
Answer: A
NEW QUESTION 48
Which of the following is FALSE regarding proactive fraud auditing procedures?
- A. Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods
- B. Implementing proactive fraud audit procedures demonstrates management's intention to aggressively seek out possible fraudulent conduct
- C. Fraud assessment questioning techniques are most appropriately used as part of the normal audit process
- D. Fraud audit procedures should be designed to incorporate an element of surprise.
Answer: A
NEW QUESTION 49
Effective risk management involves balancing which of the following?
- A. The organization s financial reporting model and its risk tolerance
- B. The organization s risk appetite and its ability to meet its objectives
- C. The organization s internal controls and its financial goals
- D. The organization s regulatory requirements and its available resources
Answer: D
NEW QUESTION 50
As part of her audit of ABC Corp . Rachel, a CPA. is identifying the risks of material misstatement due to fraud As part of this task, she should evaluate any unexpected relationships that she identified in performing analytical procedures.
- A. True
- B. False
Answer: A
NEW QUESTION 51
During a fraud risk assessment, (he assessment (earn is seeking information on the ethical tone set by upper and middle managers The team members determine that, for this task, they would like to get candid one-on-one feedback from employees away from their peers. Which of the following techniques would be most helpful for them to use in gathering this information?
- A. Focus groups
- B. Anonymous feedback mechanisms
- C. Interviews
- D. Surveys
Answer: B
NEW QUESTION 52
Which of the following is NOT a way that an organization's fraud risk assessment should be incorporated into the audit process''
- A. It should be used to replace the auditor's own identification and assessment of fraud risks.
- B. It should be used to assess whether there is a moderate-to-high risk of management override of internal controls within the moderate-to-high fraud risk areas
- C. It should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.
- D. It should be used to design audit tests to evaluate whether the controls are operating effectively
Answer: A
NEW QUESTION 53
Which of the following is FALSE regarding fraud examiners responsibilities under the ACFE Code of Professional Ethics?
- A. Confidential information provided to fraud examiners by their clients is considered privileged and therefore legally exempt from disclosure in all circumstances
- B. If fraud examiners become aware of a situation that might appear to others as though they have a conflict of interest they should immediately disclose the situation to company management
- C. Fraud examiners must obtain and document evidence in a manner that ensures that the chain of custody is preserved
- D. In determining what information to include in a fraud examination report, fraud examiners should try to decide what users will consider important and material
Answer: D
NEW QUESTION 54
The findings of the 2018 Report to the Nations include all of the following EXCEPT:
- A. The median losses caused by executives are higher than those caused by staff-level employees
- B. The majority of employees who commit occupational fraud are first-lime offenders.
- C. More occupational frauds are committed by women than by men.
- D. The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is living beyond their means
Answer: A
NEW QUESTION 55
Which of the following is TRUE regarding the reporting of the fraud risk assessment results7
- A. All of the above
- B. The fraud risk assessment report should be delivered in a style most suited to the language of the business
- C. The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding
- D. A fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified
Answer: A
NEW QUESTION 56
Which of the following statements regarding white-collar defendants is TRUE?
- A. They are more likely to be fined than to face prison terms as punishment
- B. The lower the offenders' social status, the more likely they are to be imprisoned
- C. They are less likely to insist on a trial than other offenders
- D. All of the above
Answer: A
NEW QUESTION 57
Which of the following best describes the purpose of The National Commission on Fraudulent Financial Reporting (the Treadway Commission)?
- A. Studying the effect of the threat of vicarious liability on the behavior of corporate executives
- B. Defining the responsibility of the auditor in preventing and detecting fraud
- C. Designing a model corporate compliance program
- D. Determining the specific requirements of the Principles of Risk Management
Answer: B
NEW QUESTION 58
Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?
- A. Support for establishing stronger protection for foreign shareholders than for domestic shareholders
- B. Recognition of the importance of the role of stakeholders in corporate governance
- C. Guidance regarding appropriate board structures, responsibilities, and procedures
- D. A request that governments have in place an appropriate framework to support good corporate governance practices
Answer: A
NEW QUESTION 59
Which of the following is an example of organizational crime?
- A. An accounting clerk forging company checks to herself
- B. Management of several construction companies engaging in bid rigging
- C. doctor conspiring with patients to file false health care insurance claims
- D. A salesman offering bribes to secure a contract
Answer: A
NEW QUESTION 60
In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss This response is known as:
- A. Avoiding the risk
- B. Mitigating the risk
- C. Transferring the risk
- D. Assuming the risk
Answer: C
NEW QUESTION 61
An effective system of internal controls:
- A. Decreases the perception that fraud will be detected
- B. Focuses more on detective controls than preventive controls
- C. Focuses more on preventive controls than detective controls
- D. Does not completely eliminate the risk of fraud
Answer: C
NEW QUESTION 62
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