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

1. In the area of criminological theory, deterrence is the theory that tries to prevenl crime by using the threat of criminal sanctions.

A) False
B) True

2. At the end of an engagement, a Certified Fraud Examiner (CFE) might provide a report to their client about the information uncovered during the investigation. Which of the following statements is TRUE regarding the potential privilege that applies to this report?

A) A fraud examiner's report is considered privileged information and is therefore protected from being legally demanded by outside parties.
B) A fraud examiner's report may be privileged from disclosure in certain circumstances, but it does not have an absolute legal privilege.
C) A fraud examiner's report is only privileged from disclosure if the author is also a professional legal advisor.
D) A fraud examiner's report is privileged from disclosure by anyone other than the client.

3. Which of the following Is one of the recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

A) Develop a written charter for management
B) Have adequate compensation committee resources and authority
C) Give shareholders oversight of hotline reporting programs
D) Have a mandatory independent audit committee

4. Which of the following statements about the fraud risk assessment process Is MOST ACCURATE?

A) If the individuals conducting the fraud risk assessment truly believe that fraud could not happen at the organization, then the assessment process should reflect that belief.
B) The fraud risk assessment can be effectively conducted by people inside or outside of the organization.
C) To ensure the independence of the team members, a fraud risk assessment must be conducted by a consultant or other external party.
D) The fraud risk assessment is most effective when management's influence on the process is limited

5. Which of the following is NOT explicitly prohibited by the ACFE Code of Professional Ethics?

A) Drawing conclusions based upon evidence
B) Participating in an activity where there is an undisclosed conflict of interest
C) Acting in a way that could be deemed unethical by the industry
D) Engaging in behavior that is against the law

Solutions: