CFE-Fraud-Prevention-and-Deterrence Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Questions and Answers

Control activities

Ethical culture

Risk assessment

Monitoring

True

False

Rationalization

Lack of integrity

Opportunity

Pressure

Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.

Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file. Susan complied with the court order, even though she did not have the client's authorization to do so.

All of the above are violations

The internal audit function should discuss how and when to report fraud-related issues with senior management and the board of directors before such issues arise.

The internal audit function is permitted, but not required, to periodically report about the organization's fraud risks to senior management and the board of directors.

The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence.

The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.

Proactively identifying fraud risks

Limiting the damage caused by fraud occurrences

Punishing fraud perpetrators

All of the above

Fraud risk management is considered to be the foundation of effective corporate governance

Corporate governance's primary purpose is to ensure the accuracy of the organization's financial reports

Effective corporate governance practices are most necessary in an organization in which the owners are also the individuals responsible for setting the corporate strategy.

An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization

ABC must comply with specific listing standards for the stock exchange(s) on which it is listed

ABC is required to comply with G20/OECD Principles of Corporate Governance

ABC is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions

ABC is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.

Independent monitoring

Operating environment

Risk tolerance

Governance and culture

An organization should subject vendors to an internal audit conducted by the organization's own auditors before agreeing to do business with them.

An organization should avoid revealing that it is seeking information about potential vendors prior to starting a relationship with them.

An organization should request that new vendors fill out a questionnaire about their background immediately after signing a contract with them.

An organization should include a clause in the contract requiring the vendor to report any misconduct before entering into an agreement with them.

Assuming the risk

Mitigating the risk

Avoiding the risk

Transferring the risk

True

False

True

False

The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them

The Principles state that an entity's corporate governance framework should discourage active cooperation between corporations and stakeholders in creating wealth.

The Principles are intended to be applicable in developed economies but not in emerging markets.

The Principles state that an entity's corporate governance framework should ensure the equitable treatment of all shareholders.

The more personalized the communication, the more effective it will be in encouraging employees to participate

The communication should be made in a format mat is most appropriate for the culture of the organization

The communication should be visibly disseminated throughout the business

All of the above

Contract law

Guidance from her family and friends

The ACFE Code of Professional Ethics

Philosophical principles related to ethics

Focus groups

Surveys

Anonymous feedback mechanisms

Interviews

True

False