CFE Fraud Prevention and Deterrence Exam Dumps - Reliable Way to Pass and Get Certified

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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 or was 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.

True

False

2. Consistently punishing perpetrators can be an effective fraud prevention mechanism

True

False

3. Which of the following Is FALSE regarding a fraud risk assessment?

The assessment team should consider how employees behave as part of Its assessment

The assessment should be used to improve employee fraud awareness.

The designation of an area as being high risk does not conclusively mean that fraud is occurring there.

The objective of the assessment is to provide an estimate of the organization's fraud losses.

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.

True

False

5. Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.

True

False

6. According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:

The continued pressures of a culture that rewards affluence and success

The economy's increased reliance on credit

The increased constraints of the regulatory environment for businesses

The increased opportunity for wrongdoing as a result of advancing information technologies

7. Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management―Integrating with Strategy and Performance?

Event avoidance

Risk tolerance

Compliance

Review and revision

8. Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.

Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file. Susan complied with the court order, even though she did not have the client's authorization to do so.

All of the above are violations

9. A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI) .

Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?

In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.

The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.

The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement

The objectives of the audit are likely narrower than those of a private-sector financial statement audit.

10. Employee support programs are a fraud prevention mechanism that addresses which leg of the Fraud Triangle

Rationalization

Lack of integrity

Opportunity

Pressure

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11. Which of the following criminological theories asserts that the three elements that have the most influence on crime are the availability of suitable targets, absence of capable guardians, and presence of motivated offenders?

Rational choice theory

Differential association theory

Routine activities theory

Social control theory

12. Which of the following is NOT explicitly prohibited by the ACFE Code of Professional Ethics?

Acting in a way that could be deemed unethical by the industry

Drawing conclusions based upon evidence

Participating in an activity where there is an undisclosed conflict of interest

Engaging in behavior that is against the law

13. Which of the following is FALSE regarding an organization's anti-fraud policy?

A detailed anti-fraud policy can make it easier to investigate and punish employees who commit fraud and other dishonest acts.

To avoid legal problems in discharging employees, the anti-fraud policy should not include any specific examples of frau and misconduct.

In developing the anti-fraud policy, management should check with legal counsel regarding any legal considerations with respect to the policy.

One of the most important considerations in developing the anti-fraud policy is to ensure every allegation is handled in a uniform manner.

14. International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the establishment of anti-fraud internal controls within an organization.

True

False

15. Employees should be kept unaware that management is watching for lifestyle and behavior changes In staff members that might indicate fraud.

True

False

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CFE Fraud Prevention and Deterrence Exam Dumps – Reliable Way to Pass and Get Certified

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