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ACFE CFE-Fraud-Prevention-and-Deterrence: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam

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Question 1

Effectively documenting and communicating organizational hierarchies, including the proper flow of information, can be a helpful tool in preventing fraud

A. True

B. False

Correct Answer:A

Question 2

As part of her audit of ABC Corp . Rachel, a CPA. is identifying the risks of material misstatement due to fraud As part of this task, she should evaluate any unexpected relationships that she identified in performing analytical procedures.

A. True

B. False

Correct Answer:A

Question 3

Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?

A. Establishing well-defined job descriptions to facilitate performance evaluations

B. Evaluating employee performance based solely on productivity and profit

C. Tying employee compensation to reasonable organizational performance goals

D. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks

Correct Answer:B

Question 4

The generation and use of relevant, quality information to support the functioning of internal control is a principle related to which component of the Committee of Sponsoring Organizations of the Treadway Commissions (COSO) Internal Control—Integrated Framework (the Framework)?

A. Risk assessment

B. Control environment

C. Monitoring

D. Information and communication

Correct Answer:A

Question 5

Which of the following statements regarding white-collar defendants is TRUE?

A. The lower the offenders' social status, the more likely they are to be imprisoned

B. They are more likely to be fined than to face prison terms as punishment

C. They are less likely to insist on a trial than other offenders

D. All of the above

Correct Answer:B

Question 6

Jenny is a highly respected employee at XYZ Corp Her husbands gambling addiction has caused them to have a significant amount of debt Jenny begins stealing money from the company to cover her husbands gambling losses. This situation best illustrates which leg of the Fraud Triangle?

A. Perceived opportunity

B. Rationalization

C. Perceived non-shareable financial need

D. Perceived acquiescence

Correct Answer:C

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