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All CFE-Fraud-Prevention-and-Deterrence Test Inside ACFE Questions

Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Questions and Answers

Question 17

Which of the following statements is FALSE regarding an organization's fraud risk management program?

Options:

A.

The program must include mechanisms to address breaches in compliance.

B.

The punishment for intentional noncompliance should be carried out in a consistent and firm manner.

C.

Formal sanctions for intentional noncompliance should be determined and enacted privately

D.

A specific individual or team should be designated as responsible for monitoring compliance with the program

Question 18

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?

Options:

A.

Josie should report her findings to those charged with governance of the organization.

B.

Josie should not disclose her findings to anyone until after she has conducted a full investigation.

C.

Josie should immediately report her findings to the local media.

D.

Josie should confront Carissa with her audit findings and try to get a confession.

Question 19

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

Options:

A.

A requirement for a corporate governance framework that protects the exercise of management’s rights.

B.

Support for the equal treatment of all members of an organization’s governing body.

C.

A request that governments implement effective internal controls to support good corporate governance practices.

D.

An emphasis on the importance of timely, accurate and transparent disclosure mechanisms.

Question 20

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?

Options:

A.

Harry should keep the communication private and only share it with executive management.

B.

Harry's communication should encourage employees to participate in the assessment process.

C.

Harry should find a generic template to use as the primary communication to the entire staff.

D.

Harry's communication should be sent to the entire staff from his own email address.