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

1. Which of the following is TRUE regarding prosecutions of white-collar criminals?

A) Only a small percentage of perpetrators are punished when an organization deals with a fraud case internally.
B) The primary reason organizations decline to prosecute fraud cases is a belief that their internal discipline methods are sufficient
C) Most fraud cases are only handled internally and are not referred to law enforcement for prosecution
D) When fraud cases are handled internally, an employee is more likely to be suspended or put on probation than to be terminated for their crime.

2. Which of the following is TRUE regarding corporate governance?

A) Effective corporate governance practices are most necessary in an organization in which the owners are also the individuals responsible for setting the corporate strategy.
B) Fraud risk management is considered to be the foundation of effective corporate governance
C) Corporate governance's primary purpose is to ensure the accuracy of the organization's financial reports
D) An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization

3. Jane, a Certified Fraud Examiner (CFE), was hired lo conduct a fraud examination at XYZ Company Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring Consequently. XYZ's management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management's request.

A) False
B) True

4. XYZ. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that XYZ is subject to?

A) XYZ must comply with the various laws and regulations in the countries in which it operates
B) XYZ is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions
C) XYZ is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.
D) XYZ is required to comply with G20'OECD Principles of Corporate Governance.

5. Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Smith to encourage his team members to keep their cash drawers in balance?

A) Demote employees who continue to have reconciliation discrepancies
B) Take away an hour of paid time off for each time the drawer is over or short
C) Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.
D) Publicly call out and criticize employees whose cash drawers are over or short.

Solutions: