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

1. According to International Organization for Standardization (ISO) 31000:2018, an organization's risk management program should be proportionate to the organization's specific operations and objectives.

A) True
B) False

2. Po, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination. She did not find fraud, but in Po's opinion, there were several internal control deficiencies that, if not corrected, could facilitate the occurrence of fraud. Under the ACFE Code of Professional Ethics, which of the following is TRUE?

A) Po may include her opinion on the internal controls in her report to management only if she amends her contract.
B) Po may include her opinion on the internal controls in her report to management because it is a technical matter.
C) Po may include her opinion on the internal controls in her report to management only if management agrees to compensate her for the addition.
D) Po may not include her opinion on the internal controls in her report to management because that is not what she was hired to assess.

3. Management at Alpha Company is developing a corporate compliance program. To ensure that the program will be effective, management should both incentivize employees for their compliance and discipline them for any violations.

A) True
B) False

4. Which of the following statements regarding monitoring employees for warning signs of fraud is MOST ACCURATE?

A) Employees should be made aware that management is watching for unexplained lifestyle and behavioral changes that might indicate fraudulent conduct.
B) Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.
C) An increase in employee wealth is always a sign of fraud that should be investigated.
D) Managers should be instructed that it is a violation of employee privacy rights to monitor employees for behaviors that are indicative of fraud.

5. A fraud examiner discovers evidence suggesting possible misconduct by a senior executive. The examiner's supervisor instructs him to stop investigating and destroy his working papers. What should the examiner do?

A) Preserve the evidence and act in accordance with professional and legal obligations
B) Follow instructions because management has authority over the investigation
C) Destroy the working papers after documenting the request
D) Ignore the evidence because it involves senior management

Solutions: