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

1. Julia, an internal auditor, is formalizing a process to evaluate the effectiveness of the company's control system over time, including both ongoing evaluations and periodic, separate evaluations.
Julia's initiative BEST pertains to the component of the Committee of Sponsoring Organizations of the Treadway Commission's COSO Internal Control--Integrated Framework the Framework:

A) Risk assessment
B) Control environment
C) Control activities
D) Monitoring

2. Effectively documenting and communicating organizational hierarchies, including the proper flow of information, can be a helpful tool in preventing fraud.

A) False
B) True

3. 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:

A) Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
B) All of the above
C) implement two separate sets of ethics policies, one for management and one for employees
D) Create an environment in which employees feel safe challenging management's decisions

4. Which of the following Is TRUE regarding the reporting of the fraud risk assessment results?

A) A fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified
B) The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding
C) The fraud risk assessment report should be delivered in a style most suited to the language of the business
D) All of the above

5. Why is vendor due diligence important in anti-fraud programs?

A) It replaces procurement controls
B) It helps identify fraud, corruption, and compliance risks before engagement
C) It guarantees vendor profitability
D) It eliminates contract negotiations

Solutions: