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

1. An effective system of anti-fraud controls

A) Focuses more on detective controls than preventive controls
B) Increases the perception that fraud will be detected
C) Fully eliminates the risk of fraud
D) Focuses more on preventive controls than detective controls

2. Josie is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While conducting her audit procedures, she discovers evidence that Carissa, the company's chief financial officer, has been fraudulently manipulating the financial statements. Which of the following is Josie's BEST response to these findings?

A) Josie should report her findings to those charged with governance of the organization.
B) Josie should immediately report her findings to the local media.
C) Josie should confront Carissa with her audit findings and try to get a confession.
D) Josie should not disclose her findings to anyone until after she has conducted a full investigation.

3. Which of the following statements is TRUE according to rational choice theory?

A) Crime can be deterred by increasing the personal benefit to potential perpetrators.
B) Crime can be deterred by decreasing the personal risk to potential perpetrators.
C) Crime originates from an instinctual response to external stimuli without any rational or conscious decision by the perpetrator.
D) Crime originates from a rational and conscious decision made by the perpetrator in order to receive an intended benefit.

4. Which of the following statements regarding recommended vendor due diligence procedures is MOST ACCURATE?

A) An organization should include a clause in the contract requiring the vendor to report any misconduct before entering into an agreement with them.
B) An organization should subject vendors to an internal audit conducted by the organization's own auditors before agreeing to do business with them.
C) An organization should avoid revealing that it is seeking information about potential vendors prior to starting a relationship with them.
D) An organization should request that new vendors fill out a questionnaire about their background immediately after signing a contract with them.

5. According to International Organization for Standardization (ISO) 31000:2018, an effective and efficient risk management program contains all of the following principles EXCEPT:

A) The program facilitates continuous improvement.
B) The program takes human and cultural factors into account.
C) The program is customized and proportionate to the organization's operations and objectives.
D) The program is static and consistent, even during times of organizational change.

Solutions: