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

1. Green, a Certified Fraud Examiner (CFE). had an ethical dilemma regarding her business contract with her professional partners. Which of the following sources of guidance would be considered the lowest level of reference to help Green in determining the most ethical course of action?

A) Contract law
B) Guidance from her family and friends
C) The ACFE Code of Professional Ethics
D) Philosophical principles related to ethics

2. Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.

A) False
B) True

3. Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?

A) ISA 240 requires auditors to effectively raise awareness about the risk of fraud within the audited organization.
B) ISA 240 creates requirements for management regarding the establishment of a holistic fraud risk management program.
C) ISA 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization.
D) ISA 240 establishes standards regarding the auditor's responsibility to consider fraud in an audit of financial statements.

4. Benjamin, a Certified Fraud Examiner (CFE). was contacted regarding an engagement to investigate a complex money laundering case spanning numerous international jurisdictions and involving multiple cutting-edge technologies. Benjamin had previously attended a seminar on investigating money laundering schemes, but he had no other training or experience in such cases. However, he accepted the engagement and chose to conduct the work himself.
Benjamin's conduct would likely be a violation of the ACFE Code of Professional Ethics.

A) False
B) True

5. International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the establishment of anti-fraud internal controls within an organization.

A) False
B) True

Solutions: