The Best Practice Test Preparation for the CFE-Fraud-Prevention-and-Deterrence Certification Exam
CFE-Fraud-Prevention-and-Deterrence Exam Dumps, Practice Test Questions BUNDLE PACK
NEW QUESTION # 78
Which of the following theories suggests that, when considering the possibility of violating a law. people are likely to ask themselves. "What will my spouse think if they find out?"
- A. Operant theory
- B. Behavioral theory
- C. Social control theory
- D. Cognitive theory
Answer: C
NEW QUESTION # 79
Fraud risks related to corruption include all of the following EXCEPT;
- A. Receipt of kickbacks
- B. Payment of bribes
- C. Espionage by competitors
- D. Aiding and abetting vendor fraud
Answer: C
NEW QUESTION # 80
Maria conducted a fraud examination that led to a valid confession of guilt from Rit a. In Maria's verbal report to her superiors, she stated that, in her opinion. "Rita is guilty of embezzlement." Maria has just violated the ACFE Code of Professional Ethics.
- A. True
- B. False
Answer: A
NEW QUESTION # 81
During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization's reported revenue amount However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?
- A. The auditors should reconsider the reliability of the audit evidence they have previously obtained.
- B. The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.
- C. The auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.
- D. The auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold
Answer: D
NEW QUESTION # 82
A corporation can generally be held criminally responsible for criminal acts committed by its employees even if those in management had no knowledge of or participation in the underlying events.
- A. True
- B. False
Answer: A
NEW QUESTION # 83
Which of the following principles of corporate governance pertains to the duty of the organization to act in the best interest of society?
- A. Fairness
- B. Responsibility
- C. Accountability
- D. Transparency
Answer: A
NEW QUESTION # 84
Which of the following is FALSE regarding a background check policy for employees'7
- A. As part of the screening process, management should contact the references provided by the job candidate
- B. At a minimum, management should conduct a background check on any candidate who will have constant access to cash, checks, and credit card numbers, or other easily stolen items.
- C. Where permitted by law. management should run a background check on any existing employee who is being promoted to a position that includes access to sensitive or valuable company resources, even if a background check was run on the individual at the time of hire
- D. When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.
Answer: D
NEW QUESTION # 85
Management at ABC Corp. is assessing the company s ethical tone and how it affects the organization s fraud risk. To most effectively reinforce an anti-fraud culture, management should
- A. All of the above
- B. Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
- C. Create an environment in which employees feel safe challenging managements decisions
- D. Implement two separate sets of ethics policies one for management and one for employees
Answer: A
NEW QUESTION # 86
Which of the following is a detective anti-fraud control?
- A. Separation of duties
- B. Hiring policies and procedures
- C. Fraud awareness training
- D. Independent reconciliations
Answer: A
NEW QUESTION # 87
Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.
- A. True
- B. False
Answer: A
NEW QUESTION # 88
According to Silk and Vogel's research, business leaders rationalize legal violations by asserting that compliance with government regulations is too costly and cuts too heavily into company profits.
- A. True
- B. False
Answer: A
NEW QUESTION # 89
Stevens, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination at ABC Company. His examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently, ABC's management asked Stevens to state in his official examination report that the organization is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. Under the ACFE Code of Professional Ethics. Stevens is permitted to comply with management's request based on the findings of his examination.
- A. True
- B. False
Answer: B
NEW QUESTION # 90
Julia is conducting a formal assessment of XYZ Corporation s ethical culture To which of the five components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control-Integrated Framework (the Framework) does her assessment pertain?
- A. Monitoring
- B. Information and communication
- C. Control activities
- D. Control environment
Answer: D
NEW QUESTION # 91
Fraud risks related to regulatory and legal misconduct include all of the following EXCEPT:
- A. Conflicts of interest
- B. Insider trading
- C. Fraudulent customer payments
- D. Anti-competitive practices
Answer: A
NEW QUESTION # 92
In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:
- A. All of the above
- B. The organization's incentive programs
- C. The possibility of management's override of controls
- D. Risks to the organization's reputation
Answer: A
NEW QUESTION # 93
Which of the following is NOT 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 legal and regulatory environment in which the organization operates
- C. The ability of the framework to remain static during changes in the corporate landscape
- D. The organization's cultural environment
Answer: C
NEW QUESTION # 94
In the area of criminological theory, deterrence is the theory that tries to prevenl crime by using the threat of criminal sanctions.
- A. True
- B. False
Answer: A
NEW QUESTION # 95
Which of the following is TRUE regarding the reporting of the fraud risk assessment results7
- A. The fraud risk assessment report should be delivered in a style most suited to the language of the business
- B. All of the above
- 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: B
NEW QUESTION # 96
Which of the following is FALSE regarding the fraud risk assessment team?
- A. The team size should be limited to a maximum of three individuals.
- B. The team should consist of individuals with diverse knowledge, skills, and perspectives.
- C. The team members might include both internal and external sources
- D. The team members should have experience in gathering and eliciting information
Answer: A
NEW QUESTION # 97
Which of the following is an example of organizational crime?
- A. An accounting clerk forging company checks to herself
- B. A doctor conspiring with patients to Tile false health care insurance claims
- C. Management of several construction companies engaging In bid rigging
- D. A salesman offering bribes to secure a contract
Answer: C
NEW QUESTION # 98
The findings of the 2018 Report to the Nations include all of the following EXCEPT:
- A. The majority of employees who commit occupational fraud are first-lime offenders.
- B. The median losses caused by executives are higher than those caused by staff-level employees
- C. The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is living beyond their means
- D. More occupational frauds are committed by women than by men.
Answer: B
NEW QUESTION # 99
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. Accepting an assignment to secretly infiltrate the fraud examiner s employing organization and transmit inside information to another party
- D. Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
Answer: A
NEW QUESTION # 100
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