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

1. Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.

A) True
B) False

2. Fraud risks related to corruption include:

A) Fraudulent customer payments
B) Espionage by competitors
C) Payment of bribes to procure business
D) Reporting revenue in the wrong accounting period

3. Which of the following is LEAST LIKELY to be a factor that directors and management should consider when developing a corporate governance framework for an organization?

A) The organization's cultural environment
B) The organization's ethical environment
C) The organization's physical operating environment
D) The organization's legal and regulatory environment

4. To reinforce an anti-fraud culture, it is BEST for an organization's management to:

A) Demonstrate the same ethical behavior required of individuals at lower levels of the company.
B) Discourage employees from voicing concerns regarding senior leadership's actions or decisions.
C) Discipline any employees who question their direct supervisor's behavior or policies.
D) Use a checklist of initiatives to ensure that all the elements of a strong corporate culture are in place.

5. During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization's reported revenue amount However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

A) The auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold
B) The auditors should reconsider the reliability of the audit evidence they have previously obtained.
C) The auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.
D) The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.

Solutions: