ACFE CFE-Fraud-Prevention : Certified Fraud Examiner - Fraud Prevention and Deterrence Exam

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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

Question #1
Which of the following controls would MOST effectively reduce the risk of fictitious vendors being added to the accounting system?

A. Independent review of vendor setup requests with supporting documentation
B. Annual inventory counts
C. Increasing employee bonuses
D. Encrypting vendor payment files

Question #2
Black, a Certified Fraud Examiner CFE, was hired to conduct a fraud examination. He did not find fraud, but in Black's opinion, the controls he examined were deficient. Under the ACFE Code of Professional Ethics, which of the following is TRUE?

A. Black may include his opinion on the internal control deficiencies in his report to management only if he gets formal approval from the board of directors.
B. Black may include his opinion on the internal control deficiencies in his report to management only if he amends his engagement letter.
C. Black may include his opinion on the internal control deficiencies in his report to management because it is a technical matter.
D. Black is not permitted to express his opinion on the internal control deficiencies in his report to management under any circumstances.

Question #3
Which of the following is a TRUE statement regarding the role of a well-designed organizational structure within an anti-fraud program?

A. A confused organizational structure makes it harder for a fraudster to perpetrate and conceal their misdeeds.
B. Flowcharts displaying departmental structures can be a helpful tool in communicating the proper flow of information as part of fraud prevention efforts.
C. Communicating the proper flow of information to everyone in the organization can increase the organization's vulnerability to fraud.
D. It is best to avoid formally documenting organizational structures to limit fraudsters' ability to circumvent oversight controls.

Question #4
At the end of an engagement, a Certified Fraud Examiner (CFE) might provide a report to their client about the information uncovered during the investigation. Which of the following statements is TRUE regarding the potential privilege that applies to this report?

A. A fraud examiner's report may be privileged from disclosure in certain circumstances, but it does not have an absolute legal privilege.
B. A fraud examiner's report is considered privileged information and is therefore protected from being legally demanded by outside parties.
C. A fraud examiner's report is only privileged from disclosure if the author is also a professional legal advisor.
D. A fraud examiner's report is privileged from disclosure by anyone other than the client.

Question #5
Which of the following is the MOST EFFECTIVE way for management to respond to incidents of fraud within an organization?

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

Solutions: