Pass CFE-Fraud-Prevention-and-Deterrence Exam in First Attempt Guaranteed 100% Cover Real Exam Questions [Mar-2024]
Valid CFE-Fraud-Prevention-and-Deterrence test answers & ACFE CFE-Fraud-Prevention-and-Deterrence exam pdf
NEW QUESTION # 47
Patrick is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking his audit procedures, he discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Patrick's BEST response to these findings?
- A. Patrick should report his findings to those charged with governance of the organization.
- B. Patrick should not disclose his findings to any other parties due to client confidentiality
- C. Patrick should immediately report his findings to local law enforcement authorities.
- D. Patrick should confront management with his audit findings and try to get a confession.
Answer: A
NEW QUESTION # 48
Formally documenting and communicating organizational hierarchies, including the proper flow of information, can hinder an organization's fraud prevention initiatives.
- A. True
- B. False
Answer: A
NEW QUESTION # 49
In developing a corporate governance framework for an organization, directors and management must consider which of the following?
- A. The organization s cultural environment
- B. The organization s legal and regulatory environment
- C. All of the above
- D. The organization s ethical environment
Answer: C
NEW QUESTION # 50
Which of the following is NOT a way that an organization's fraud risk assessment should be incorporated into the audit process''
- A. It should be used to design audit tests to evaluate whether the controls are operating effectively
- B. It should be used to replace the auditor's own identification and assessment of fraud risks.
- C. It should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.
- D. It should be used to assess whether there is a moderate-to-high risk of management override of internal controls within the moderate-to-high fraud risk areas
Answer: B
NEW QUESTION # 51
According to The Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing, which of the following should the internal audit team evaluate in its assessment of the risk management process?
- A. The organization s risk exposures relating to the sale of assets
- B. The management team's assessment of the internal controls over financial reporting
- C. The materiality of the organization s financial statements
- D. The organization s fraud risk management initiatives
Answer: D
NEW QUESTION # 52
Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?
- A. A request that governments have in place an appropriate framework to support good corporate governance practices
- B. Guidance regarding appropriate board structures, responsibilities, and procedures
- C. Recognition of the importance of the role of stakeholders in corporate governance
- D. Support for establishing stronger protection for foreign shareholders than for domestic shareholders
Answer: D
NEW QUESTION # 53
According to modern criminological studies, which of the following is the determinant aspect of white-collar crime?
- A. Organizational opportunity
- B. Social class
- C. Criminal history
- D. Cultural ties
Answer: A
NEW QUESTION # 54
The generation and use of relevant, quality information to support the functioning of internal control is a principle related to which component of the Committee of Sponsoring Organizations of the Treadway Commissions (COSO) Internal Control-Integrated Framework (the Framework)?
- A. Monitoring
- B. Control environment
- C. Risk assessment
- D. Information and communication
Answer: C
NEW QUESTION # 55
Which of the following Is TRUE regarding an organization's ethics program?
- A. In designing the ethics program, management should consider whether the organization currently has any ethical leadership Issues
- B. All of the above
- C. An effective written ethics policy alone is sufficient to communicate management's ethical philosophy and serve as a comprehensive ethics program
- D. To be most effective, access to the organization's ethics policy should be restricted to employees and other Internal parties only
Answer: A
NEW QUESTION # 56
Which of the following statements about the fraud risk assessment process is MOST ACCURATE"?
- A. The assessment team must be perceived as independent and objective by others for the assessment to be effective
- B. To ensure the independence of the team members a fraud risk assessment must be conducted by a consultant or other external party.
- C. The fraud risk assessment is most effective when management s influence on the process is limited.
- D. If the individuals conducting the fraud risk assessment truly believe that fraud could not happen at the organization the assessment process should reflect that belief.
Answer: B
NEW QUESTION # 57
The objectives of a fraud risk management program include
- A. Proactively identifying fraud risks
- B. All of the above
- C. Punishing fraud perpetrators
- D. Limiting the damage caused by fraud occurrences
Answer: B
NEW QUESTION # 58
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. Shareholder oversight of internal controls
- B. A mandatory independent compensation committee
- C. Adequate audit committee resources and authority
- D. A written charter for management
Answer: C
NEW QUESTION # 59
Which of the following is an example of organizational crime?
- A. Management of several pharmaceutical companies engaging in a price fixing scheme
- B. An HR employee adding a ghost employee to the payroll and misappropriating the paychecks
- C. A sales manager using a corporate credit card for personal expenses
- D. An insurance claims agent conspiring with customers to file false insurance claims and share the proceeds
Answer: A
NEW QUESTION # 60
Which of the following is NOT one of the three general approaches used to control corporate crime?
- A. Voluntary changes in corporate attitudes and structure
- B. Media blacklisting of the organization
- C. Consumer action to force change
- D. Strong intervention of the government
Answer: B
NEW QUESTION # 61
Which of the following is among the audit committee s primary responsibilities related to fraud risk management?
- A. Implementing the fraud risk management program
- B. Punishing fraud perpetrators discovered through fraud risk management activities
- C. Designing the fraud risk management program
- D. Understanding how internal and external audit strategies address fraud risk
Answer: C
NEW QUESTION # 62
Maria conducted a fraud examination that led to a valid confession of guilt from Rita. In Maria's verbal report to her superiors, she stated that, in her opinion. "Rita is guilty of embezzlement." Maria has just violated the ACFE Code of Professional Ethics.
- A. False
- B. True
Answer: A
NEW QUESTION # 63
During the course of a fraud examination. While, an employee of the ABC Corp.. approaches Blue, a Certified Fraud Examiner (CFE), and tells Blue that she wishes to furnish information in confidence. Blue also is employed by the ABC Corp. Blue should:
- A. Tell White that she will try to keep the information as confidential as possible
- B. Agree that the information will be held in confidence, even though Blue knows it will not be
- C. Not agree to the request for confidentiality
- D. Take White's request straight to ABC Corp.'s management
Answer: C
NEW QUESTION # 64
Consistently punishing perpetrators can be an effective fraud prevention mechanism
- A. True
- B. False
Answer: A
NEW QUESTION # 65
Which of the following principles of corporate governance pertains to the duty of the organization to act in the best interest of society?
- A. Responsibility
- B. Fairness
- C. Accountability
- D. Transparency
Answer: A
NEW QUESTION # 66
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