ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence : CFE-Fraud-Prevention

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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. Susannah Is conducting an external audit of a company In a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking her audit procedures, she discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Susannah's BEST response to these findings?

A) Susannah should not disclose her findings to any other parties due to client confidentiality.
B) Susannah should Immediately report her findings to the secunties regulators
C) Susannah should confront management with her audit findings and try to get a confession.
D) Susannah should report her findings to the audit committee of the board of directors.

2. Which of the following controls would MOST effectively reduce the risk of fictitious vendors being added to the accounting system?

A) Encrypting vendor payment files
B) Increasing employee bonuses
C) Independent review of vendor setup requests with supporting documentation
D) Annual inventory counts

3. A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?

A) The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.
B) The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement
C) In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.
D) The objectives of the audit are likely narrower than those of a private-sector financial statement audit.

4. Which of the following is included in the G20/OECD Principles of Corporate Governance?

A) A requirement for a corporate governance framework that protects the exercise of management's rights.
B) A request that governments implement effective internal controls to support good corporate governance practices.
C) Support for the equal treatment of all members of an organization's governing body.
D) An emphasis on the importance of timely, accurate, and transparent disclosure mechanisms.

5. According to Silk and Vogel's research, which of the following is one of the ways that businesses rationalize illegal conduct?

A) Corporate violations that involve large sums of money are often spread among so many organizations that each gains very little individually.
B) Government regulations are justified because the additional costs of regulations and bureaucratic procedures increase government profits.
C) Government regulation is unnecessary because the matters being regulated are unimportant.
D) Violations are caused by innocent errors in judgment rather than economic necessity.

Solutions: