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CFE-Fraud-Prevention-and-Deterrence Exam Questions Tutorials

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

Question 9

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?

Options:

A.

Analytical review of BKY's financial statements is the best way to uncover small frauds that might be missed by other detection methods.

B.

Fraud audit procedures should be designed to avoid an element of surprise.

C.

Auditors should avoid asking questions such as, "Has anyone ever asked you to do something unethical?" as part of their audits, as this can limit employees' willingness to communicate.

D.

Fraud assessment questioning techniques are most effectively used as part of the normal audit process.

Question 10

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?

Options:

A.

XYZ must comply with the various laws and regulations in the countries in which it operates

B.

XYZ is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.

C.

XYZ is required to comply with G20'OECD Principles of Corporate Governance.

D.

XYZ is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions

Question 11

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?

Options:

A.

All government auditors maintain the same requirements for reporting evidence of potential fraud uncovered during a public-sector financial statement audit.

B.

Government auditors are legally prohibited from reporting evidence of potential fraud to any parties outside the organization being audited.

C.

Government auditors' reporting requirements pertaining to fraud are substantially the same as those for external auditors in the private sector.

D.

The requirements for government auditors to report evidence of potential fraud depend on the jurisdiction and the specific audit mandate.

Question 12

According to criminologist Charles McCaghy, which of the following is the most compelling factor behind deviance by organizations?

Options:

A.

Executive failures

B.

Excessive regulatory requirements

C.

Profit pressure

D.

Unethical corporate culture