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

1. Formally documenting and communicating organizational hierarchies, including the proper flow of information, can hinder an organization's fraud prevention initiatives.

A) True
B) False

2. According to ACFE research, which of the following is TRUE?

A) An unwillingness to share duties is the most reported red flag displayed by fraud perpetrators prior to the detection of their crime.
B) Most fraudsters have previous criminal convictions for fraud-related offenses.
C) Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.
D) Men commit significantly more frauds than women do.

3. Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?

A) Management must balance the investment in anti-fraud controls with the benefit of those controls and the amount of risk it is willing to accept.
B) Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented tnem.
C) Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program's effectiveness.
D) Management should tailor the detailed objectives of the fraud risk management program to the organization's specific needs and goals.

4. Which of the following scenarios is LEAST LIKELY to be considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics?

A) Ren undertakes an external engagement that requires him to work outside the normal work hours of his primary employer.
B) Lori accepts an assignment to infiltrate her employer and transmit inside information to a competitor.
C) DeVon undertakes engagements for both sides in a case of an alleged fraudulent warranty scheme.
D) Karen accepts an assignment to search for fraud indicators at an organization in which she is an undisclosed partner.

5. The objective of anti-fraud controls is to:

A) Completely eliminate residual fraud risk
B) Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.
C) Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk
D) Completely eliminate inherent fraud risk.

Solutions: