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

1. According to the 2020 Report to the Nations.___________schemes ate the MOST COMMON form of occupational fraud, while_________schemes are the MOST COSTLY form of occupational fraud.

A) Corruption, asset misappropriation
B) Asset misappropriation; corruption
C) Asset misappropriation: financial statement fraud
D) Financial statement fraud: corruption

2. Which of the following statements regarding best practices that organizations can take to protect and support whistleblowers is MOST ACCURATE?

A) Organizations should publicize their whistleblower procedures internally but should avoid communicating any procedural information to parties outside of the organization.
B) Organizations should establish formal consequences that are to be imposed upon employees at the company who retaliate against a whistleblower.
C) Organizations should implement a clear whistleblower policy that lists out every type of misconduct that has ever been reported at the company.
D) Organizations should emphasize that rules regarding whistleblower protections are only intended for lower level employees who might be more vulnerable to retaliation.

3. Management at ABC Company wants to transfer one of the risks identified during the company's fraud risk assessment process. Which of the following actions would be MOST APPROPRIATE to support this response?

A) Purchasing fidelity insurance to protect against the associated risk of loss
B) Discontinuing the underlying activity completely
C) Deciding not to implement any responsive measures
D) Implementing additional preventive and detective controls

4. Helene has been working at WPX Corp. for nine years. She takes some of the company's products from the warehouse and sells them online. Helene tells herself that the company owes it to her for her "years of underpaid service." This situation BEST illustrates which component of the Fraud Triangle?

A) Rationalization
B) Perceived non-shareable financial need
C) Perceived opportunity
D) Integrity lapse

5. Stevens, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination at ABC Company. His examination did not reveal any conclusive evidence that fraud had occurred orwas occurring. Consequently, ABC's management asked Stevens to state in his official examination report that the organization is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. Under the ACFE Code of Professional Ethics.
Stevens is permitted to comply with management's request based on the findings of his examination.

A) False
B) True

Solutions: