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

1. According to the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control-integrated Framework (the Framework), there are five interrelated components of a company's internal control. Which of the following is NOT among these five components?

A) Monitoring
B) Independent oversight
C) Control environment
D) Information and communication

2. The findings in the 2020 Report to the Nations include which of the following?

A) The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is complaints about management.
B) The median losses caused by executives are lower than those caused by staff-level employees
C) Mote occupational frauds are committed by men than by women
D) The majority of fraudsters have been previously punished by an employer for a fraud-related offense

3. Which of the following Is NOT a way that an organization's fraud risk assessment should be Incorporated Into the audit process?

A) It should be used to replace the auditor's own identification and assessment of fraud risks.
B) it should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.
C) It should be used to assess whether there is a moderate-to-high risk of management overriding controls within the moderate-to-high fraud risk areas.
D) It should be used to design audit tests to evaluate whether the controls are operating effectively.

4. Which action BEST demonstrates management's commitment to fraud prevention?

A) Maintaining a visible commitment to ethical conduct and accountability
B) Reducing fraud training expenditures
C) Conducting investigations only after losses occur
D) Delegating all ethics responsibilities to auditors

5. Criminologist Charles McCaghy has stated that regulatory pressure is the single most compelling factor behind deviance by organizations.

A) True
B) False

Solutions: