ACFE Certified Fraud Examiner CFE-Fraud-Prevention

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

1. Maria, a Certified Fraud Examiner (CFE), is conducting a fraud risk assessment for a company where her brother serves as the Chief Financial Officer. Maria believes she can remain impartial.
What should she do?

A) Disclose the relationship and remove herself from the engagement if independence could reasonably be questioned
B) Continue the assessment because no actual fraud has been identified
C) Continue the assessment if the board verbally approves
D) Continue the assessment but avoid reviewing financial controls

2. Which of the following is LEAST LIKELY to be a factor that directors and management should consider when developing a corporate governance framework for an organization?

A) The organization's cultural environment
B) The organization's physical operating environment
C) The organization's legal and regulatory environment
D) The organization's ethical environment

3. Po, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination. She did not find fraud, but in Po's opinion, there were several internal control deficiencies that, if not corrected, could facilitate the occurrence of fraud. Under the ACFE Code of Professional Ethics, which of the following is TRUE?

A) Po may not include her opinion on the internal controls in her report to management because that is not what she was hired to assess.
B) Po may include her opinion on the internal controls in her report to management because it is a technical matter.
C) Po may include her opinion on the internal controls in her report to management only if she amends her contract.
D) Po may include her opinion on the internal controls in her report to management only if management agrees to compensate her for the addition.

4. Timothy, a new Certified Fraud Examiner (CFE), has been tasked with his first fraud examination engagement. To exercise appropriate professional skepticism as he conducts the engagement, Timothy should:

A) Begin the engagement with the belief that no fraud has occurred.
B) Maintain professional skepticism that can only be dispelled by evidence.
C) Form the engagement hypothesis without consideration for the nature of the assignment.
D) Maintain a skeptical attitude throughout the entire engagement even if the evidence shows no signs of fraudulent activity.

5. According to the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control-integrated Framework (the Framework), there are five interrelated components of a company's internal control. Which of the following is NOT among these five components?

A) Information and communication
B) Independent oversight
C) Control environment
D) Monitoring

Solutions: