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

1. Which of the following scenarios would MOST LIKELY be considered a violation of the ACFE Code of Professional Ethics?

A) Dee, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she rushed to complete the investigation, she overlooked key items of evidence and failed to uncover a fraud scheme.
B) All of the above are violations.
C) Riva, a CFE, uncovered material internal control deficiencies that were material but unrelated to the kickback scheme she was investigating. In her final report to management, Riva included information about the deficiencies despite their being unrelated to the situation she was hired to investigate.
D) Derrick, a CFE, was hired by a client to conduct a fraud examination but found nothing abnormal.
A year later, he received a court order to provide the client's file to the court. Derrick complied with the court order despite not having the client's authorization to provide the file.

2. Adan, an internal auditor who works at BKY Co., is reviewing the auditing procedures for his company. He is specifically considering the ways BKY can proactively audit for fraud. Which of the following is TRUE regarding the use of proactive fraud auditing procedures at BKY?

A) Fraud audit procedures should be designed to avoid an element of surprise.
B) Auditors should avoid asking questions such as, "Has anyone ever asked you to do something unethical?" as part of their audits, as this can limit employees' willingness to communicate.
C) Fraud assessment questioning techniques are most effectively used as part of the normal audit process.
D) Analytical review of BKY's financial statements is the best way to uncover small frauds that might be missed by other detection methods.

3. Which of the following is TRUE regarding G20/OECD Principles of Corporate Governance (the Principles)?

A) The Principles state that an entity's corporate governance framework should discourage active cooperation between corporations and stakeholders in creating wealth.
B) The Principles are intended to be applicable in developed economies but not in emerging markets.
C) The Principles state that an entity's corporate governance framework should ensure the equitable treatment of all shareholders.
D) The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them

4. Risk management is focused on balancing the organization's___________with Its____________.

A) Risk appetite, ability to meet its objectives
B) Objectives; resources
C) Internal controls; financial reporting model
D) Regulatory requirements, risk appetite

5. The internal auditor's fraud-related responsibilities include which of the following?

A) Overseeing management's actions to manage fraud risks
B) Establishing and maintaining effective anti-fraud controls at a reasonable cost
C) Evaluating indicators of fraud and deciding whether any further action is necessary or whether an investigation should be recommended
D) Obtaining reasonable assurance that the organization's financial statements are free of material misstatements caused by fraud

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