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Certified Fraud Examiner CFE-Fraud-Prevention-and-Deterrence Reddit Questions

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

Question 29

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?

Options:

A.

Patrick should confront management with his audit findings and try to get a confession.

B.

Patrick should immediately report his findings to local law enforcement authorities.

C.

Patrick should not disclose his findings to any other parties due to client confidentiality

D.

Patrick should report his findings to those charged with governance of the organization.

Question 30

Which of the following is FALSE regarding an organization's anti-fraud policy?

Options:

A.

A detailed anti-fraud policy can make it easier to investigate and punish employees who commit fraud and other dishonest acts.

B.

To avoid legal problems in discharging employees, the anti-fraud policy should not include any specific examples of frau and misconduct.

C.

In developing the anti-fraud policy, management should check with legal counsel regarding any legal considerations with respect to the policy.

D.

One of the most important considerations in developing the anti-fraud policy is to ensure every allegation is handled in a uniform manner.

Question 31

Which of the following is an example of organizational crime?

Options:

A.

A sales manager using a corporate credit card for personal expenses

B.

Management of several pharmaceutical companies engaging in a price fixing scheme

C.

An insurance claims agent conspiring with customers to file false insurance claims and share the proceeds

D.

An HR employee adding a ghost employee to the payroll and misappropriating the paychecks

Question 32

Which of the following is TRUE regarding an organization's ethics program?

Options:

A.

An ethics program should avoid addressing rewards for ethical behavior and sanctions for unethical behavior

B.

In designing the ethics program, management should consider how stakeholders throughout the organization define success

C.

To be most effective, access to the organization’s ethics policy should be restricted to external parties such as vendors and customers

D.

Having a written ethics policy is sufficient to communicate management’s ethical philosophy and serve as a comprehensive ethics program