ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence : CFE-Fraud-Prevention

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

1. Alicia, a government auditor, is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions. Which of the following is TRUE regarding Alicia's consideration of fraud during this engagement?

A) If Alicia identifies fraud during the audit engagement, she must immediately withdraw from the engagement.
B) Alicia should focus on potential fraud and does not need to consider the possibility of abuse or other misconduct during the audit engagement.
C) In conducting the audit, Alicia's objectives are likely narrower than those of a private-sector financial statement audit.
D) Alicia must comply with the requirements found in International Standard on Auditing 240 as they apply to both private- and public-sector audits.

2. Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?

A) ISA 240 requires auditors to effectively educate the staff about the risk of fraud within the audited organization.
B) ISA 240 provides guidance regarding the auditor's responsibility to consider fraud in an audit of financial statements.
C) ISA 240 establishes auditors as being primarily responsible for implementing anti-fraud internal controls within an organization.
D) ISA 240 creates requirements for the board of directors regarding the establishment of a holistic fraud risk management program.

3. 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?

A) Ren undertakes an external engagement that requires him to work outside the normal work hours of his primary employer.
B) DeVon undertakes engagements for both sides in a case of an alleged fraudulent warranty scheme.
C) Lori accepts an assignment to infiltrate her employer and transmit inside information to a competitor.
D) Karen accepts an assignment to search for fraud indicators at an organization in which she is an undisclosed partner.

4. Based on research regarding the criminogenic tendencies of organizations, employees are more likely to engage in fraudulent behavior when given a direct order to do so by a superior due to an inherent desire to obey people in positions of authority.

A) False
B) True

5. During the course of a fraud examination. While, an employee of the ABC Corp.. approaches Blue, a Certified Fraud Examiner (CFE), and tells Blue that she wishes to furnish information in confidence.
Blue also is employed by the ABC Corp. Blue should:

A) Agree that the information will be held in confidence, even though Blue knows it will not be
B) Not agree to the request for confidentiality
C) Take White's request straight to ABC Corp.'s management
D) Tell White that she will try to keep the information as confidential as possible

Solutions: