CFE-Fraud-Prevention-and-Deterrence Practice Exam Questions and Answers

A.  

Overseeing the organization's fraud risk management activities

B.  

Designing the fraud risk management program

C.  

Punishing fraud perpetrators discovered through fraud risk management activities

D.  

Implementing the fraud risk management program

A.  

Rodrigo. a CF

E.  

uncovered several material Internal control deficiencies unrelated to the Kickback scheme he was Investigating. In his final report to management. Rodrigo included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

B.  

Vivian, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she was in a hurry to complete the investigation, she overlooked key items of evidence and ended up failing to uncover a major fraud scheme.

C.  

Tom, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss. A year later, he received a court order to provide the client's file to the ordering court. Tom complied with the court order, even though he did not have the client's authorization to do so.

D.  

All of the above are violations.

A.  

It replaces the need for individuals to consult their own conscience.

B.  

It facilitates practical enforcement and profession-wide Internal discipline.

C.  

It serves as a reference and benchmark for ethical guidance

D.  

It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles

A.  

In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.

B.  

The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.

C.  

The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement

D.  

The objectives of the audit are likely narrower than those of a private-sector financial statement audit.

A.  

Strong intervention of the government

B.  

Voluntary changes in corporate attitudes and structure

C.  

Consumer action to force change

D.  

Media blacklisting of the organization

A.  

Men commit significantly more frauds than women do.

B.  

Most fraudsters have previous criminal convictions for fraud-related offenses.

C.  

An unwillingness to share duties is the most reported red flag displayed by fraud perpetrators prior to the detection of their crime.

D.  

Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.

A.  

Fully eliminates the risk of fraud

B.  

Focuses more on detective controls than preventive controls

C.  

Focuses more on preventive controls than detective controls

D.  

Increases the perception that fraud will be detected

A.  

True

B.  

False

A.  

Social control theory

B.  

Operant theory

C.  

Cognitive theory

D.  

Behavioral theory

A.  

Elena should suspend the audit and begin a new audit focused on the internal controls

B.  

Elena should report the findings in writing to the appropriate law enforcement agencies.

C.  

Elena should provide a written communication about the findings to senior management.

D.  

Elena should work independently to correct the underlying internal control deficiency.