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

1. The objectives of a fraud risk management program include:

A) Punishing fraud perpetrators
B) All of the above
C) Limiting the damage caused by fraud occurrences
D) Proactively identifying fraud risks

2. Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To most effectively reinforce an anti-fraud culture, management should:

A) implement two separate sets of ethics policies, one for management and one for employees
B) Create an environment in which employees feel safe challenging management's decisions
C) All of the above
D) Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place

3. Which of the following is the MOST EFFECTIVE way for management to respond to incidents of fraud within an organization?

A) Emphasizing to all employees that the company maintains a policy of zero tolerance for fraud.
B) Maintaining a policy that allows employees one warning before they are terminated for committing fraud
C) Keeping all known incidents of fraud private to protect the identities of parties involved.
D) Punishing frauds only if they have a significant financial impact.

4. The internal auditor's fraud-related responsibilities include which of the following?

A) Establishing and maintaining effective anti-fraud controls at a reasonable cost
B) Evaluating indicators of fraud and deciding whether any further action is necessary or whether an investigation should be recommended
C) Overseeing management's actions to manage fraud risks
D) Obtaining reasonable assurance that the organization's financial statements are free of material misstatements caused by fraud

5. A company implements a fraud hotline but does not allow anonymous reporting. What is the MOST likely consequence?

A) Fewer tips and reduced reporting effectiveness
B) Increased reporting rates
C) Elimination of false allegations
D) Reduced employee concerns about retaliation

Solutions: