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

1. To address an employee's consistent failure to meet deadlines, a manager removes the employee's ability to work from home This is an example of what type of behavioral response?

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

2. Which of the following Is one of the recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

A) Have a mandatory independent audit committee
B) Have adequate compensation committee resources and authority
C) Develop a written charter for management
D) Give shareholders oversight of hotline reporting programs

3. Which of the following is FALSE regarding a background check policy for employees?

A) When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.
B) As part of the screening process, management should contact the references provided by the job candidate.
C) Where permitted by law, management should run a background check on any existing employee who is being promoted to a position that includes access to sensitive or valuable company resources, even if a background check was run on the individual at the time of hire
D) At a minimum, management should conduct a background check on any candidate who will have constant access to cash, checks, and credit card numbers, or other easily stolen items.

4. Maria, a Certified Fraud Examiner (CFE), is conducting a fraud risk assessment for a company where her brother serves as the Chief Financial Officer. Maria believes she can remain impartial.
What should she do?

A) Disclose the relationship and remove herself from the engagement if independence could reasonably be questioned
B) Continue the assessment because no actual fraud has been identified
C) Continue the assessment if the board verbally approves
D) Continue the assessment but avoid reviewing financial controls

5. During a fraud risk assessment, the assessment team determines that it would like to observe the interactions among several employees as they collectively discuss the organization's current fraud awareness training. Which of the following techniques would be MOST HELPFUL for the team to use in gathering this information?

A) Focus groups
B) Surveys
C) Interviews
D) Anonymous feedback mechanisms

Solutions: