CFE-Fraud-Prevention-and-Deterrence ACFE Exam Questions and Free Practice Test

Question 7

International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization

A. True

B. False

Correct Answer:B

Question 8

Which of the following is among the audit committee s primary responsibilities related to fraud risk management?

A. Understanding how internal and external audit strategies address fraud risk

B. Designing the fraud risk management program

C. Punishing fraud perpetrators discovered through fraud risk management activities

D. Implementing the fraud risk management program

Correct Answer:B

Question 9

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

A. Participating in an activity where there is an undisclosed conflict of interest

B. Engaging in behavior that is against the law

C. Drawing conclusions based upon evidence

D. Acting in a way that could be deemed unethical by the industry

Correct Answer:C

Question 10

Consistently punishing perpetrators can be an effective fraud prevention mechanism.

A. True

B. False

Correct Answer:B

Question 11

Fraud risks related lo corruption include all of the following EXCEPT

A. Espionage by competitor

B. Aiding and abetting vendor fraud

C. Payment of bribes

D. Receipt of kickbacks

Correct Answer:D

Question 12

The Institute of Internal Auditors' (IIA) International Standards for the Professional Practice of Internal Auditing states that

A. The internal auditor must apply the skill and care of an expert whose primary responsibility is investigating fraud

B. The internal auditor must apply the skill and care of an expert whose primary responsibility is detecting fraud.

C. The internal auditor must apply the skill and care of an unbiased, infallible audit professional.

D. The internal auditor must apply the skill and care of a reasonably prudent and competent internal auditor

Correct Answer:C

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