ACFE CFE-Fraud-Prevention

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

1. Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?

A) They state that a corporate governance framework should promote transparent and fair markets and the efficient allocation of resources.
B) They assert that a corporate governance framework should ensure that the treatment of shareholders differs based on the class of stock they own.
C) They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.
D) They are intended to be applicable in emerging markets but not in developed economies.

2. Fraud risks related to regulatory and legal misconduct include all of the following EXCEPT:

A) Anti-competitive practices
B) Conflicts of interest
C) Insider trading
D) Fraudulent customer payments

3. Which of the following is a TRUE statement regarding the components of the Committee of Sponsoring Organizations of the Treadway Commission's COSO Internal Control--Integrated Framework the Framework?

A) The Framework identifies 12 components of internal control that must all be in place for the internal control system to be effective.
B) Ethical culture is one of the primary components of internal control identified in the Framework.
C) Determining the effectiveness of an organization's internal control system involves assessing whether the identified components meet minimum regulatory requirements.
D) Determining the effectiveness of an organization's internal control system involves assessing whether all of the identified components are operating together in an integrated manner.

4. Devon, an employee at Tilly Corp., repeatedly demonstrates a negative attitude when working with other departments. To address this behavior, Devon's manager tells him that he is no longer allowed to lead cross-departmental projects. This is an example of what type of behavioral response?

A) Punishment
B) Negative reinforcement
C) None of the above
D) Positive reinforcement

5. Which of the following statements is FALSE regarding an organization's fraud risk management program?

A) Formal sanctions for intentional noncompliance should be well-publicized throughout the company
B) There should be measures in place to address failures in the design or operation of anti-fraud controls, as well as fraud occurrences
C) The program must include mechanisms to monitor and identify breaches in compliance.
D) The responsibility of handling suspected incidents of noncompliance should be delegated to someone outside of the company.

Solutions: