Unique Top-selling CFE-Fraud-Prevention-and-Deterrence Exams - New 2021 ACFE Pratice Exam
Certified Fraud Examiner Dumps CFE-Fraud-Prevention-and-Deterrence Exam for Full Questions - Exam Study Guide
NEW QUESTION 28
Which of the following statements about the fraud risk assessment process is MOST ACCURATE"?
- A. The fraud risk assessment is most effective when management s influence on the process is limited.
- B. If the individuals conducting the fraud risk assessment truly believe that fraud could not happen at the organization the assessment process should reflect that belief.
- C. The assessment team must be perceived as independent and objective by others for the assessment to be effective
- D. To ensure the independence of the team members a fraud risk assessment must be conducted by a consultant or other external party.
Answer: D
NEW QUESTION 29
As part of her audit of ABC Corp . Rachel, a CPA. is identifying the risks of material misstatement due to fraud As part of this task, she should evaluate any unexpected relationships that she identified in performing analytical procedures.
- A. True
- B. False
Answer: A
NEW QUESTION 30
International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization
- A. False
- B. True
Answer: A
NEW QUESTION 31
Which of the following is FALSE regarding corporate governance'
- A. An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization
- B. Effective corporate governance practices are considered to be the foundation of fraud risk management.
- C. Effective corporate governance practices are most necessary in an organization in which the owners are not also the individuals responsible for setting and executing the business strategy
- D. Corporate governances primary purpose is to ensure the accuracy of the organizations financial reports
Answer: C
NEW QUESTION 32
Jane, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination at XYZ Company. Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently.
XYZ's management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management's request
- A. False
- B. True
Answer: A
NEW QUESTION 33
In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.
- A. True
- B. False
Answer: A
NEW QUESTION 34
Which of the following statements is FALSE regarding an organization's fraud risk management program1?
- A. The responsibility of handling suspected incidences of noncompliance should be delegated to someone outside of the company
- B. A Formal sanctions for intentional noncompliance should be well-publicized throughout the company
- C. The program must include mechanisms to monitor and identify breaches in compliance
- D. There should be measures in place to address failures in the design or operation of anti-fraud controls, as well as fraud occurrervces
Answer: B
NEW QUESTION 35
The fact that most groups within groups a society have the same ideas of right and wrong greatly assists in the ability to determine the correct ethical decision in a given situation.
- A. False
- B. True
Answer: A
NEW QUESTION 36
Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the most effective way for Smith to encourage his team members to keep their cash drawers in balance?
- A. Take away an hour of paid time off for each time the drawer is over or short.
- B. Demote employees who continue to have reconciliation discrepancies
- C. Publicly call out and criticize employees whose cash drawers are over or short
- D. Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.
Answer: D
NEW QUESTION 37
According to G20/OECD Principles of Corporate Governance (the Principles):
- A. Companies should disclose all financial information to investors, regardless of the cost burden of the disclosure
- B. Governments should have in place a corporate governance framework that promotes transparent and fair markets
- C. A corporate governance framework should focus on the rights of shareholders but does not need to include the rights of other organizational stakeholders
- D. All of the above
Answer: B
NEW QUESTION 38
Which of the following is NOT a purpose served by a professional organization s code of conduct?
- A. It facilitates practical enforcement and profession-wide internal discipline
- B. It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles
- C. It serves as a reference and benchmark for ethical guidance
- D. It provides clear answers to all ethical dilemmas the organization s members might face
Answer: C
NEW QUESTION 39
Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treactway Commission's (COSO) Enterprise Risk Management-Integrating with Strategy and Performance?
- A. Risk tolerance
- B. Review and revision
- C. Compliance
- D. Event avoidance
Answer: A
NEW QUESTION 40
A corporation can generally be held criminally responsible for criminal acts committed by its employees even if those in management had no knowledge of or participation in the underlying events.
- A. True
- B. False
Answer: A
NEW QUESTION 41
Which of the following is TRUE regarding the communication of the fraud risk assessment process?
- A. The communication should be in the form of a personalized message from the assessment sponsor
- B. All of the above
- C. The communication should be visibly disseminated throughout the business
- D. The communication should actively encourage employees to participate in the assessment process
Answer: B
NEW QUESTION 42
Which of the following is NOT considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics? )
- A. Undertaking engagements for both sides in a case of an alleged product substitution scheme
- B. Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner's ownership interest is disclosed
- C. Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
- D. Accepting an assignment to secretly infiltrate the fraud examiner s employing organization and transmit inside information to another party
Answer: A
NEW QUESTION 43
According to Silk and Vogel's research, business leaders rationalize legal violations by asserting that the damage done by the violations is diffused among a large number of parties.
- A. True
- B. False
Answer: A
NEW QUESTION 44
Independent auditors play a critical role in enhancing the reliability of financial information by financial position and performance in compliance with accepted accounting standards.
- A. True
- B. False
Answer: A
NEW QUESTION 45
According to the 2018 Report to the Nations.___________schemes are the most common form of occupational fraud, while_________schemes are the costliest form of occupational fraud
- A. Corruption; asset misappropriation
- B. Asset misappropriation; corruption
- C. Financial statement fraud, corruption
- D. Asset misappropriation; financial statement fraud
Answer: B
NEW QUESTION 46
In the context of fraud examination, integrity requires all of the following EXCEPT:
- A. An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong
- B. Avoidance of differences of opinion
- C. Independence of mental attitude
- D. Subordination of desires for personal gain to the interests of clients, employers, and the public
Answer: B
NEW QUESTION 47
Which of the following is an example of organizational crime?
- A. An accounting clerk forging company checks to herself
- B. Management of several construction companies engaging in bid rigging
- C. doctor conspiring with patients to file false health care insurance claims
- D. A salesman offering bribes to secure a contract
Answer: A
NEW QUESTION 48
Effective risk management involves balancing which of the following?
- A. The organization s financial reporting model and its risk tolerance
- B. The organization s risk appetite and its ability to meet its objectives
- C. The organization s internal controls and its financial goals
- D. The organization s regulatory requirements and its available resources
Answer: D
NEW QUESTION 49
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