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

1. Gregory, an internal auditor, and Brandon, the company's purchasing manager, have had several heated disagreements over purchasing procedures and policies. Gregory has just been told that he will be the lead on the company's fraud risk assessment. During the fraud risk assessment.
Gregory should:

A) Have someone else perform the fraud risk assessment work related to the purchasing function
B) Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.
C) Confront Brandon about the disagreements and discuss how they increase the organization's risk of fraud-
D) Automatically designate the purchasing function as a high-risk area.

2. Which of the following scenarios is the MOST ACCURATE representation of organizational crime?

A) An accountant uses company funds to pay personal credit card charges.
B) An inventory manager taking home the company's product to sell privately.
C) An agreement between all the local floral companies to unnecessarily raise prices.
D) A retail clerk colluding with a friend to commit a scheme involving fraudulent returns.

3. In the area of criminological theory, deterrence is the theory that tries to prevenl crime by using the threat of criminal sanctions.

A) True
B) False

4. Ian is drafting a report containing the results of his company's fraud risk assessment process. To be MOST EFFECTIVE, Ian's report should:

A) Include a complete list of recommended actions for management to take to address all identified risks.
B) Contain a detailed, comprehensive list of every assessment finding.
C) Focus on the findings that will make the most impact on the company's fraud risk management efforts.
D) Reflect the assessment team's subjective perspective regarding the risks identified.

5. Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?

A) They assert that a corporate governance framework should ensure the equitable treatment of all the organization's shareholders.
B) They state that a corporate governance framework should require disclosure of all financial information to the organization's investors.
C) They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.
D) They are intended to be applicable in developed economies but not in emerging markets.

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