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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. Jody has been working at ABC Corp. for ten years. He steals funds from the company and tells himself that the company owes it to him for his "unrewarded hard work and loyalty" This situation BEST illustrates which leg of the Fraud Triangle?

A) Rationalization
B) Lack of personal Integrity
C) Perceived opportunity
D) Perceived non-shareable financial need

2. Mario is charged with implementing a fraud reporting program on behalf of his organization.
Which of the following is a best practice that Mario should follow to ensure that the program is successful?

A) Inform employees that they can make their report anonymously (where permitted by law).
B) Inform employees that they are required to report any information about suspected fraud only to their direct supervisor.
C) Inform employees that the names of all individuals who report misconduct will be shared with the organization's management and law enforcement.
D) Inform employees that they will be held accountable for reporting any tips that cannot be verified.

3. Which of the following factors increases an organization's inherent inclination toward committing crime according to Diane Vaughan's research?

A) Management rewards employees who challenge how the company functions.
B) Management seeks diversity in attitudes and perspectives when hiring employees.
C) Management encourages employee loyalty through social functions.
D) Management separates employee performance goals from company performance goals.

4. Alicia, a government auditor, is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions. Which of the following is TRUE regarding Alicia's consideration of fraud during this engagement?

A) If Alicia identifies fraud during the audit engagement, she must immediately withdraw from the engagement.
B) Alicia should focus on potential fraud and does not need to consider the possibility of abuse or other misconduct during the audit engagement.
C) In conducting the audit, Alicia's objectives are likely narrower than those of a private-sector financial statement audit.
D) Alicia must comply with the requirements found in International Standard on Auditing 240 as they apply to both private- and public-sector audits.

5. Which of the following is LEAST LIKELY to be a factor that directors and management should consider when developing a corporate governance framework for an organization?

A) The organization's ethical environment
B) The organization's physical operating environment
C) The organization's cultural environment
D) The organization's legal and regulatory environment

Solutions: