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

1. 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

2. The internal auditor's fraud-related responsibilities include which of the following?

A) Establishing and maintaining effective anti-fraud controls at a reasonable cost
B) Obtaining reasonable assurance that the organization's financial statements are free of material misstatements caused by fraud
C) Evaluating indicators of fraud and deciding whether any further action is necessary or whether an investigation should be recommended
D) Overseeing management's actions to manage fraud risks

3. 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) Visibly adhere to the same set of ethics policies that is required of all employees
B) Create an environment in which employees are dissuaded from challenging management's decisions
C) Use a checklist of initiatives to make sure all the elements of a strong tone at the lop are in place
D) All of the above

4. The internal auditor's fraud-related responsibilities include which of the following?

A) Attesting that the organization's financial statements are free of material misstatements caused by fraud
B) Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program
C) Reporting to regulators regarding the entity's vulnerability to fraud
D) Overseeing management's actions to manage fraud risks

5. Which organizational factor is MOST likely to undermine an anti-fraud culture?

A) Tolerance of policy violations by high-performing employees
B) Ethical leadership behavior
C) Consistent enforcement of policies
D) Anonymous reporting mechanisms

Solutions: