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?
"Crimes of the Middle Classes" finds that all the following factors have contributed to the rising problem of economic crime EXCEPT:
Gray, an independent Certified Fraud Examiner (CFE), was hired by Green, president of the ABC Corporation, to investigate allegations that one of ABC's employees is taking kickbacks. During the investigation. Gray teams that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:
Which of the following is among the board of directors' primary responsibilities related to fraud risk management?
While, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination She did not find fraud, but. In White's opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence of fraud Under the ACFE Code of Professional Ethics. White may include her opinion on the controls in her report to management.
Warren wants to decrease the amount of cash register discrepancies among the cashiers at his small business. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Warren to encourage the cashiers to reduce their discrepancies and keep their cash drawers balanced?
According to ACFE research, which of the following is TRUE regarding prosecutions of white-collar criminals?
Which of the following is a TRUE statement regarding the role of a well-designed organizational structure within an anti-fraud program?
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?
XYZ. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that XYZ is subject to?
Which of the following is TRUE regarding government auditors' responsibilities to report evidence of potential fraud uncovered during an audit of a public-sector organization's financial statements?
According to criminologist Charles McCaghy, which of the following is the most compelling factor behind deviance by organizations?
In Ihe context of fraud examination, integrity requires all of the following EXCEPT:
Based on research regarding the criminogenic nature of organizations, employees with strong personal values and ethics will always disobey a superior's direct order to engage in fraudulent behavior, despite an inherent desire to obey authority figures.
Which of the following is NOT a factor that directors and management should consider when developing a corporate governance framework for an organization?
Which of the following statements regarding the objectives of a fraud risk management program is TRUE?
Which of the following statements is FALSE regarding an organization's fraud risk management program?
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?
Which of the following is included in the G20/OECD Principles of Corporate Governance?
Harry is an internal auditor with ABC Company. Harry's supervisor, the chief audit executive (CAE), is the fraud risk assessment sponsor and has tasked Harry with drafting an email communication regarding ABC's upcoming fraud risk assessment process. Which of the following is a best practice that Harry should implement?
_____________Is the criminological theory that presents crime as a conscious decision that can be deterred by reducing opportunities for criminal activity and increasing the personal risk to an Individual of being caught and punished.
Gregory, an internal auditor, and Brandon, the company's purchasing manager, have had several heated disagreements over purchasing procedures and policies. Gregory has just been told that he will be the lead on the company's fraud risk assessment. During the fraud risk assessment. Gregory should:
Which of the following scenarios is LEAST LIKELY to be considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics?
Which of the following is a best practice to ensure a successful fraud reporting program?
According to Diane Vaughan. which of the following factors increases an organization's inherent inclination toward committing crime?
At the end of an engagement, a Certified Fraud Examiner (CFE) might provide a report to their client about the information uncovered during the investigation. Which of the following statements is TRUE regarding the potential privilege that applies to this report?
Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management—Integrating with Strategy and Performance?
Which of the following is included in the G20/OECD Principles of Corporate Governance?
Patrick is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking his audit procedures, he discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Patrick's BEST response to these findings?
Which of the following is FALSE regarding an organization's anti-fraud policy?
Which of the following is an example of organizational crime?
Which of the following is TRUE regarding an organization's ethics program?
Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?
Which of the following is NOT one of the three general approaches used to control corporate crime?
Stevens, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination at ABC Company. His examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently, ABC's management asked Stevens to state in his official examination report that the organization is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. Under the ACFE Code of Professional Ethics. Stevens is permitted to comply with management's request based on the findings of his examination.
Which of the following is an example of organizational crime?
Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?
Employee anti-fraud education should:
Management at ABC Company wants to transfer one of the risks identified during the company's fraud risk assessment process. Which of the following actions would be MOST APPROPRIATE to support this response?
The theory of differential association is used frequently lo explain white-collar criminality. Which of the following is NOT one of the assertions or principles of differential association?
Jane, a Certified Fraud Examiner (CFE), was hired lo 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.
Luis, the internal audit manager for Oak Corporation, is working to formally incorporate the company's fraud risk assessment into its audit process. Which of the following is NOT a way that Oak's audit team should use the fraud risk assessment process and results as part of their audits?
Which of the following is a best practice when assembling a fraud risk assessment team?
According to the results of behavioral studies, such as those conducted by B. F. Skinner, application of punishment to undesired behavior typically results in which of the following?
Which of the following is a TRUE statement regarding fraud risks?
Which of the following is TRUE regarding prosecutions of white-collar criminals?
During an external audit of an organization's financial statements. Peter, the external auditor, uncovers significant internal control deficiencies at the audit client's organization. He believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Peter do with regard to these findings?
In response to an employee's failure to meet performance expectations, a manager demotes the employee to a junior-level position. This is an example of what type of behavioral response?
Which of the following is BEST classified as a type of external fraud risk?
Rosie, a Certified Fraud Examiner (CFE), conducted a fraud examination for her company that led to a confession of guilt from Dean. Which of the following statements in Rosie's verbal report to management would violate the ACFE Code of Professional Ethics?
Who is ultimately responsible for responding appropriately to instances of fraud within an organization?
Timothy, a new Certified Fraud Examiner (CFE), has been tasked with his first fraud examination engagement. To exercise appropriate professional skepticism as he conducts the engagement, Timothy should:
Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?
Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To MOST EFFECTIVELY reinforce an anti-fraud culture, management should:
Risk management is focused on balancing the organization's___________with Its____________.
Po, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination. She did not find fraud, but in Po's opinion, there were several internal control deficiencies that, if not corrected, could facilitate the occurrence of fraud. Under the ACFE Code of Professional Ethics, which of the following is TRUE?
Which of the following is NOT one of the three general approaches used to control corporate crime?
Which of the following statements is MOST ACCURATE regarding an organization's fraud risk management program?
As part of its anti-fraud program, Oak Company is outlining the responsibilities of different stakeholders. Who is ultimately responsible for setting the organization’s ethical tone?
Which of the following is TRUE regarding the internal audit function's reporting responsibilities pertaining to fraud?
Which of the following is one of the three general methods used to control corporate crime?
The objectives of a fraud risk management program include:
Which of the following Is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management—Integrating with Strategy and Performance?
During a fraud risk assessment, a focus group would be MOST HELPFUL in which of the following situations?
Which of the following statements regarding best practices that organizations can take to protect and support whistleblowers is MOST ACCURATE?
An effective system of anti-fraud controls
Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.
Willow, Inc. has a complex organizational structure with many specialized departments. The structure of Willow, Inc. increases the likelihood that fraud will go undetected within the organization.
Which of the following is one of the four recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?
Which of the following is NOT a responsibility of the organization's board of directors?