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

1. XYZ, Inc. Is a specialty retailer of high-end ergonomic office furniture. The company receives a very large order from ABC Company, a new customer in a different country that wants to pay on credit. Which of the following is MOST ACCURATE regarding the due diligence procedures XYZ should perform on ABC before proceeding with this transaction?

A) XYZ should examine ABC's net worth as part of deciding whether to allow the purchase on credit.
B) XYZ should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination
C) XYZ only needs to undertake due diligence procedures if ABC conducts business in countries with known corruption risks.
D) XYZ does not need to take any specific procedures to verify ABC's identity before accepting the transaction

2. According to the results of behavioral studies, such as those conducted by B. F. Skinner, application of punishment to undesired behavior typically results in which of the following?

A) Permanent suppression of the undesired behavior
B) Temporary suppression of the undesired behavior
C) No effect on the occurrence of the undesired behavior
D) increase in the occurrence of the undesired behavior

3. To reinforce an anti-fraud culture, it is BEST for an organization's management to:

A) Use a checklist of initiatives to ensure that all the elements of a strong corporate culture are in place.
B) Demonstrate the same ethical behavior required of individuals at lower levels of the company.
C) Discourage employees from voicing concerns regarding senior leadership's actions or decisions.
D) Discipline any employees who question their direct supervisor's behavior or policies.

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

A) Engaging in behavior that is against the law
B) Participating in an activity where there is an undisclosed conflict of interest
C) Drawing conclusions based upon evidence
D) Acting in a way that could be deemed unethical by the industry

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

A) False
B) True

Solutions: