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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. Which of the following statements is MOST ACCURATE regarding an effective system of anti- fraud controls?

A) It prioritizes implementing detective controls over preventive controls.
B) It deters fraudsters by increasing the perception that fraud will be detected.
C) It fully eliminates the risk of fraud by removing opportunities for misbehavior.
D) It focuses more on preventive controls than detective controls.

2. During an external audit of an organization's financial statements. Peter, the external auditor, uncovers significant internal control deficiencies at the audit client's organization. He believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Peter do with regard to these findings?

A) Peter should provide a written communication about the findings to those charged with governance.
B) Peter should discreetly work with senior management to correct the underlying internal control deficiencies.
C) Peter should report the findings in writing directly to the appropriate regulatory agencies
D) Peter should make a public announcement that he is withdrawing from the audit engagement.

3. Which of the following is FALSE regarding an organization's anti-fraud policy?

A) One of the most important considerations in developing the anti-fraud policy is to ensure every allegation is handled in a uniform manner.
B) To avoid legal problems in discharging employees, the anti-fraud policy should not include any specific examples of frau and misconduct.
C) A detailed anti-fraud policy can make it easier to investigate and punish employees who commit fraud and other dishonest acts.
D) In developing the anti-fraud policy, management should check with legal counsel regarding any legal considerations with respect to the policy.

4. Fraud risks related to regulatory and legal misconduct include all of the following EXCEPT:

A) Fraudulent customer payments
B) Conflicts of interest
C) Insider trading
D) Anti-competitive practices

5. The internal auditor's fraud-related responsibilities include which of the following?

A) Reporting to regulators regarding the entity's vulnerability to fraud.
B) Overseeing management's actions to manage fraud risks.
C) Issuing a report asserting that the organization's financial statements do not contain material misstatements caused by fraud.
D) Evaluating the organization's structures and process for fraud risk governance.

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