CFE-Fraud-Prevention by ACFE Valid Free Exam Practice Test

Question 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. Monitoring C. Control environment D. Control activities

Correct Answer: B

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Question 2

Adan, an internal auditor who works at BKY Co., is reviewing the auditing procedures for his company. He is specifically considering the ways BKY can proactively audit for fraud. Which of the following is TRUE regarding the use of proactive fraud auditing procedures at BKY?

A. Auditors should avoid asking questions such as, "Has anyone ever asked you to do something unethical?" as part of their audits, as this can limit employees' willingness to communicate. B. Analytical review of BKY's financial statements is the best way to uncover small frauds that might be missed by other detection methods. C. Fraud audit procedures should be designed to avoid an element of surprise. D. Fraud assessment questioning techniques are most effectively used as part of the normal audit process.

Correct Answer: D

Question 3

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. Financial statement fraud: corruption D. Asset misappropriation: financial statement fraud

Correct Answer: D

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Question 4

Benjamin, a Certified Fraud Examiner (CFE). was contacted regarding an engagement to investigate a complex money laundering case spanning numerous international jurisdictions and involving multiple cutting-edge technologies. Benjamin had previously attended a seminar on investigating money laundering schemes, but he had no other training or experience in such cases. However, he accepted the engagement and chose to conduct the work himself.
Benjamin's conduct would likely be a violation of the ACFE Code of Professional Ethics.

A. False B. True

Correct Answer: B

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Question 5

According to modern criminological studies, which of the following is the determinant aspect of white-collar crime?

A. Criminal history B. Organizational opportunity C. Social class D. Cultural ties

Correct Answer: B

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Question 6

During a fraud risk assessment, the assessment team determines that it would like to observe the interactions among several employees as they collectively discuss the organization's current fraud awareness training. Which of the following techniques would be MOST HELPFUL for the team to use in gathering this information?

A. Interviews B. Anonymous feedback mechanisms C. Surveys D. Focus groups

Correct Answer: D

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Question 7

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. Implementing proactive fraud audit procedures demonstrates management's intention to aggressively look for possible fraudulent conduct C. Fraud assessment questioning techniques are most appropriately used as part of the normal audit process D. Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods

Correct Answer: D

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Question 8

According to ACFE research, which of the following is TRUE regarding the three major categories of occupational fraud?

A. Corruption schemes are the costliest category of occupational fraud. B. Identity theft is both the most common and costliest category of occupational fraud. C. Asset misappropriation schemes are the most common category of occupational fraud. D. Financial statement fraud schemes are the most common category of occupational fraud.

Correct Answer: C

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Question 9

According to behaviorists such as B. F. Skinner, which of the following scenarios is MOST LIKELY to occur when an undesired behavior is punished?

A. The behavior will occur more frequently. B. The behavior will be permanently suppressed C. The behavior will not be affected by the punishment D. The behavior will return when punishment ceases

Correct Answer: D

Question 10

During an external audit of an organization's financial statements, Saskia, the external auditor, uncoverssignificant internal control deficiencies at the organization. She believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Saskia do regarding these findings?

A. Saskia should withdraw from the audit engagement immediately and issue a disclaimer on any prior work performed. B. Saskia should provide a written communication about her findings to the relevant regulatory agencies. C. Saskia should communicate the deficiencies in writing to those charged with governance. D. Saskia should suspend the current audit engagement and begin a new audit focused on the internal control deficiencies.

Correct Answer: C

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence - CFE-Fraud-Prevention Exam Practice Test