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

1. Devon, an employee at Tilly Corp., repeatedly demonstrates a negative attitude when working with other departments. To address this behavior, Devon's manager tells him that he is no longer allowed to lead cross-departmental projects. This is an example of what type of behavioral response?

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

2. Which of the following is NOT considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics?

A) Accepting an assignment to secretly infiltrate the fraud examiner's employing organization and transmit inside information to another party
B) Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
C) Accepting an assignment to evaluate the anti-fraud controls at an organization in which the fraud examiner is a shareholder, provided the fraud examiner's ownership interest is disclosed
D) Undertaking engagements for both sides in a case of alleged vendor overbilling

3. Harry is an internal auditor with ABC Company. Harry's supervisor, the chief audit executive (CAE), is the fraud risk assessment sponsor and has tasked Harry with drafting an email communication regarding ABC's upcoming fraud risk assessment process. Which of the following is a best practice that Harry should implement?

A) Harry should keep the communication private and only share it with executive management.
B) Harry's communication should encourage employees to participate in the assessment process.
C) Harry should find a generic template to use as the primary communication to the entire staff.
D) Harry's communication should be sent to the entire staff from his own email address.

4. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines internal control as:

A) A process aimed at proactively identifying, evaluating, and addressing an organization's vulnerabilities to fraud by both internal and external sources
B) A process implemented to review how well the organization's risk management capabilities have increased value over time and how they will continue to drive value for the organization
C) A process involving personnel at all levels of the organization that aims to eliminate all uncertainty and risk while also ensuring the achievement of organizational goals
D) A process, effected by an entity's board of directors, management, and other personnel,designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance

5. Which of the following is TRUE regarding a background check policy for employees?

A) Management should perform a background check on any candidate who will have access to cash, checks, credit card numbers, or other items that are easily stolen.
B) As part of the screening process, management should contact the personal and professional references provided by the job candidate only if they are unsure whether the candidate is being honest.
C) When verifying past employment, management should only ask previous employers to verify the candidate's previous position and dates of employment.
D) If a background check was conducted on an employee at the time of hire, then there is no need for management to conduct additional background checks on that employee during their employment.

Solutions: