ACFE CFE-Fraud-Prevention Exam : Certified Fraud Examiner - Fraud Prevention and Deterrence Exam

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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. Which of the following controls would MOST effectively reduce the risk of fictitious vendors being added to the accounting system?

A) Independent review of vendor setup requests with supporting documentation
B) Encrypting vendor payment files
C) Increasing employee bonuses
D) Annual inventory counts

2. Julia, an internal auditor, is formalizing a process to evaluate the effectiveness of the company's control system over time, including both ongoing evaluations and periodic separate evaluations.
Julia's initiative BEST pertains to which component of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control--Integrated Framework?

A) Control environment
B) Control activities
C) Monitoring
D) Risk assessment

3. According to behaviorists such as B. F. Skinner, which of the following scenarios is MOST LIKELY to occur when an undesired behavior is punished?

A) The behavior will return when punishment ceases
B) The behavior will be permanently suppressed
C) The behavior will occur more frequently.
D) The behavior will not be affected by the punishment

4. Patrick is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking his audit procedures, he discovers evidence that senior management has been fraudulently manipulating the financial statements.
Which of the following is Patrick's BEST response to these findings?

A) Patrick should immediately report his findings to local law enforcement authorities.
B) Patrick should not disclose his findings to any other parties due to client confidentiality
C) Patrick should confront management with his audit findings and try to get a confession.
D) Patrick should report his findings to those charged with governance of the organization.

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

A) All of the above are violations.
B) Dee, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she rushed to complete the investigation, she overlooked key items of evidence and failed to uncover a fraud scheme.
C) Derrick, a CFE, was hired by a client to conduct a fraud examination but found nothing abnormal.
A year later, he received a court order to provide the client's file to the court. Derrick complied with the court order despite not having the client's authorization to provide the file.
D) Riva, a CFE, uncovered material internal control deficiencies that were material but unrelated to the kickback scheme she was investigating. In her final report to management, Riva included information about the deficiencies despite their being unrelated to the situation she was hired to investigate.

Solutions: