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

1. 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

2. According to International Organization for Standardization (ISO) 31000:2018, an effective and efficient risk management program contains all of the following principles EXCEPT:

A) The program is static and consistent, even during times of organizational change.
B) The program takes human and cultural factors into account.
C) The program facilitates continuous improvement.
D) The program is customized and proportionate to the organization's operations and objectives.

3. At the end of an engagement, a Certified Fraud Examiner (CFE) might provide a report to their client about the information uncovered during the investigation. Which of the following statements is TRUE regarding the potential privilege that applies to this report?

A) A fraud examiner's report is only privileged from disclosure if the author is also a professional legal advisor.
B) A fraud examiner's report is privileged from disclosure by anyone other than the client.
C) A fraud examiner's report is considered privileged information and is therefore protected from being legally demanded by outside parties.
D) A fraud examiner's report may be privileged from disclosure in certain circumstances, but it does not have an absolute legal privilege.

4. An employee who previously received excellent performance evaluations suddenly begins living far beyond known financial means. What should management consider?

A) The behavior may represent a fraud red flag requiring further attention
B) The employee should be terminated immediately
C) The behavior is irrelevant to fraud risk
D) The behavior proves fraud has occurred

5. Which organizational factor is MOST likely to undermine an anti-fraud culture?

A) Tolerance of policy violations by high-performing employees
B) Consistent enforcement of policies
C) Ethical leadership behavior
D) Anonymous reporting mechanisms

Solutions: