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

1. According to the results of behavioral studies, such as those conducted by B. F. Skinner, application of punishment to undesired behavior typically results in which of the following?

A) No effect on the occurrence of the undesired behavior
B) Temporary suppression of the undesired behavior
C) increase in the occurrence of the undesired behavior
D) Permanent suppression of the undesired behavior

2. Which of the following statements regarding the objectives of a fraud risk management program is TRUE?

A) A fraud risk management program should prioritize activities that proactively identify and assess fraud risks over activities that detect fraud while it is occurring.
B) A fraud risk management program should incorporate policies and procedures designed to both prevent and detect fraud but should not address fraud responses.
C) A fraud risk management program should only focus on addressing fraud after it occurs.
D) A fraud risk management program should include the formal procedures that management takes in response to a fraud, such as rebuilding stakeholders' confidence in the organization.

3. Jenny is a highly respected employee at XYZ Corp. Her husband's gambling addiction has caused them to have a significant amount of debt. Jenny begins stealing money from the company to cover her husband's gambling losses. This situation best illustrates which leg of the Fraud Triangle?

A) Rationalization
B) Perceived opportunity
C) Perceived non-shareable financial need
D) Perceived acquiescence

4. Susannah Is conducting an external audit of a company In a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking her audit procedures, she discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Susannah's BEST response to these findings?

A) Susannah should not disclose her findings to any other parties due to client confidentiality.
B) Susannah should Immediately report her findings to the secunties regulators
C) Susannah should report her findings to the audit committee of the board of directors.
D) Susannah should confront management with her audit findings and try to get a confession.

5. 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

Solutions: