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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO), internal control is defined as:

A) A process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.
B) A process aimed at proactively identifying, assessing, and managing an organization's vulnerabilities to fraud by both internal and external sources.
C) The system that is designed and implemented to eliminate all uncertainty and risk while also ensuring the achievement of organizational goals.
D) The system enacted to ensure effective oversight of the board of directors, management, and all other parties responsible for an organization's direction, operations, and performance.

2. According to Diane Vaughan, which of the following factors increases an organization's inherent inclination toward committing crime?

A) Rewards are given to employees who challenge the status quo
B) Management seeks out diversity in attitudes and perspectives when hiring employees
C) All of the above
D) Management links employee performance goals with company performance goals

3. Rosie, a Certified Fraud Examiner (CFE), conducted a fraud examination for her company that led to a confession of guilt from Dean. Which of the following statements in Rosie's verbal report to management would violate the ACFE Code of Professional Ethics?

A) "Dean is guilty of embezzlement."
B) "Dean's confession is supported by the evidence."
C) "The evidence does not support Dean's confession."
D) "Dean confessed to embezzlement."

4. Pieter, a manager at Solox Corp., oversees the fraud training for the organization's employees.
He is reviewing the training for the coming year. Which of the following actions should Pieter take to ensure that Solox's employee anti-fraud education program is effective?

A) Require the training to only be presented by organizational executives or anti-fraud professionals.
B) Include detailed descriptions of the organization's anti-fraud controls.
C) Include common characteristics that lead individuals to commit fraud.
D) Restrict training to formal live, in-person sessions required of all full-time, lower-level employees.

5. 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) Men commit significantly more frauds than women do.
D) Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.

Solutions: