ACFE
CFE-Fraud-Prevention-and-Deterrence
Q1:
Which of the following is TRUE regarding corporate governance?
○
A
Fraud risk management is considered to be the foundation of effective corporate governance○
B
Corporate governance's primary purpose is to ensure the accuracy of the organization's financial reports○
C
Effective corporate governance practices are most necessary in an organization in which the owners are also the individuals responsible for setting the corporate strategy.○
D
An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization
ACFE
CFE-Fraud-Prevention-and-Deterrence
Q2:
Jody has been working at ABC Corp. for ten years. He steals funds from the company and tells himself that the company owes it to him for his "unrewarded hard work and loyalty" This situation BEST illustrates which leg of the Fraud Triangle?
○
A
Perceived non-shareable financial need○
B
Rationalization○
C
Perceived opportunity○
D
Lack of personal Integrity
ACFE
CFE-Fraud-Prevention-and-Deterrence
Q3:
Which of the following statements about the fraud risk assessment process Is MOST ACCURATE?
○
A
The fraud risk assessment can be effectively conducted by people inside or outside of the organization.○
B
To ensure the independence of the team members, a fraud risk assessment must be conducted by a consultant or other external party.○
C
If the individuals conducting the fraud risk assessment truly believe that fraud could not happen at the organization, then the assessment process should reflect that belief.○
D
The fraud risk assessment is most effective when management's influence on the process is limited
ACFE
CFE-Fraud-Prevention-and-Deterrence
Q4:
Which of the following Is FALSE regarding proactive fraud auditing procedures?
○
A
Fraud audit procedures should be designed to incorporate an element of surprise○
B
Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods○
C
Fraud assessment questioning techniques are most appropriately used as part of the normal audit process○
D
Implementing proactive fraud audit procedures demonstrates management's intention to aggressively look for possible fraudulent conduct
ACFE
CFE-Fraud-Prevention-and-Deterrence
Q5:
Which of the following Is NOT Included In Ihe five fraud risk management principles described In Fraud Risk Management Guide, a joint publication by COSO and the ACFE?
○
A
Communicating the expectations of those governing the fraud risk management program○
B
Performing comprehensive fraud risk assessments to identify specific fraud schemes○
C
Deploying preventive and detective fraud control activities to mitigate fraud risk○
D
Developing one-time evaluations for each fraud risk management principle