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

1. Which red flag is MOST commonly associated with corruption schemes?

A) Frequent bank reconciliation differences
B) Missing fixed assets
C) Employees with unusually close relationships to vendors or customers
D) Excessive write-offs of inventory

2. During a fraud risk assessment, a focus group would be MOST HELPFUL in which of the following situations?

A) The assessment team would like to get candid one-on-one feedback from employees in a private setting.
B) The assessment team would like to provide a means for anonymous employee suggestions or responses to questions posed.
C) The assessment team would like to observe the interactions of several employees discussing the organization's current fraud awareness training.
D) The assessment team would like to obtain individuals' responses through a formal electronic questionnaire.

3. Jenny is a highly respected employee at XYZ Corp. Her husband's gambling addiction has caused them to have a significant amount of debt. Jenny begins stealing money from the company to cover her husband's gambling losses. This situation best illustrates which leg of the Fraud Triangle?

A) Rationalization
B) Perceived acquiescence
C) Perceived non-shareable financial need
D) Perceived opportunity

4. In the context of a fraud examination, integrity requires which of the following?

A) A well-developed sense of moral philosophy and the ability to distinguish right from wrong
B) Prioritization of desires for personal gain over the interests of clients
C) The ability to conceal errors to preserve the reliability of the work performed
D) Avoidance of differences of opinion on all material matters

5. According to professional auditing standards, auditors should do which of the following as part of addressing the assessed risks of material misstatement due to fraud in the financial statements?

A) Disregard the entity's selection and application of accounting policies concerning complex transactions
B) Incorporate an element of predictability in the selection of auditing procedures to be performed
C) All of the above
D) Consider the knowledge, skill, and ability levels of the individuals who are assigned significant audit responsibilities

Solutions: