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

1. Terrel, a Certified Fraud Examiner (CFE), unknowingly violates the law one night. Which of the following statements about the ACFE Code of Professional Ethics is TRUE?

A) This conduct would not be a violation of the ACFE Code of Professional Ethics under any circumstances.
B) This conduct would be a violation of the ACFE Code of Professional Ethics.
C) This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel is arrested.
D) This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel knew the conduct was illegal.

2. Which of the following statements is MOST ACCURATE regarding an organization's fraud risk management program?

A) Formal sanctions for intentional noncompliance should be kept private and only shared if a party absolutely needs to know.
B) Punishment for intentional noncompliance should be individualized based on the offender's personal circumstances.
C) Systems to monitor and identify breaches in compliance must be included in the fraud risk management program.
D) All employees at the organization should be responsible for monitoring compliance with the program.

3. Black, a Certified Fraud Examiner CFE, was hired to conduct a fraud examination. He did not find fraud, but in Black's opinion, the controls he examined were deficient. Under the ACFE Code of Professional Ethics, which of the following is TRUE?

A) Black may include his opinion on the internal control deficiencies in his report to management only if he amends his engagement letter.
B) Black may include his opinion on the internal control deficiencies in his report to management only if he gets formal approval from the board of directors.
C) Black may include his opinion on the internal control deficiencies in his report to management because it is a technical matter.
D) Black is not permitted to express his opinion on the internal control deficiencies in his report to management under any circumstances.

4. Susannah Is conducting an external audit of a company In a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking her audit procedures, she discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Susannah's BEST response to these findings?

A) Susannah should not disclose her findings to any other parties due to client confidentiality.
B) Susannah should Immediately report her findings to the secunties regulators
C) Susannah should report her findings to the audit committee of the board of directors.
D) Susannah should confront management with her audit findings and try to get a confession.

5. A report by a fraud examiner is privileged from disclosure by anyone other than the client.

A) True
B) False

Solutions: