CFE-FRAUD-PREVENTION-AND-DETERRENCE Online Practice Questions and Answers

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines_____________as "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."

A. Fraud risk management

B. Corporate compliance

C. Internal control

D. Risk assessment

In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss This response is known as:

A. Mitigating the risk

B. Assuming the risk

C. Avoiding the risk

D. Transferring the risk

Which of the following statements regarding white-collar defendants is TRUE?

A. The lower the offenders' social status, the more likely they are to be imprisoned

B. They are more likely to be fined than to face prison terms as punishment

C. They are less likely to insist on a trial than other offenders

D. All of the above

Which of the following is TRUE regarding the reporting of the fraud risk assessment results7

A. A fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified

B. The fraud risk assessment report should be delivered in a style most suited to the language of the business

C. The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding

D. All of the above

The existence of many specialized departments within a company generally decreases the overall risk of fraud within the organization

A. True

B. False

In developing a corporate governance framework for an organization, directors and management must consider which of the following?

A. The organization s cultural environment

B. The organization s legal and regulatory environment

C. The organization s ethical environment

D. All of the above

Sofia, a Certified Fraud Examiner (CFE). look an introductory class in computer forensics When a client thought there might be evidence of a crime on his hard drive. Sofia decided to conduct a forensic examination of the hard drive even though she had no experience or advanced training in this area Sofia's conduct would likely be a violation of the ACFE Code of Professional Ethics

A. True

B. False

In the context of fraud examination, integrity requires all of the following EXCEPT:

A. Subordination of desires for personal gain to the interests of clients, employers, and the public

B. Avoidance of differences of opinion

C. Independence of mental attitude

D. An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong

For its compliance program lo be effective, an organization must perform procedures to ensure management hires only ethical individuals who exercise a substantial measure of discretion in acting on the organization s behalf.

A. True

B. False

Which of the following is NOT explicitly prohibited by the ACFE Code of Professional Ethics?

A. Participating in an activity where there is an undisclosed conflict of interest

B. Engaging in behavior that is against the law

C. Drawing conclusions based upon evidence

D. Acting in a way that could be deemed unethical by the industry