Ultimate Guide to Prepare CFE-Fraud-Prevention-and-Deterrence Certification Exam for Certified Fraud Examiner in 2021
Use Real CFE-Fraud-Prevention-and-Deterrence Dumps - ACFE Correct Answers updated on 2021
NEW QUESTION 19
As part of her audit of ABC Corp . Rachel, a CPA. is identifying the risks of material misstatement due to fraud As part of this task, she should evaluate any unexpected relationships that she identified in performing analytical procedures.
- A. True
- B. False
Answer: A
NEW QUESTION 20
In a company with all of the following parties, who should have primary responsibility for the oversight of the organization s compliance program?
- A. General counsel
- B. The chief ethics officer
- C. The board of directors
- D. Internal audit
Answer: C
NEW QUESTION 21
An effective system of internal controls:
- A. Decreases the perception that fraud will be detected
- B. Focuses more on detective controls than preventive controls
- C. Focuses more on preventive controls than detective controls
- D. Does not completely eliminate the risk of fraud
Answer: C
NEW QUESTION 22
According to the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control-Integrated Framework (the Framework), there are five interrelated components of a company's internal control. Which of the following is NOT among these five components?
- A. Control activities
- B. Monitoring
- C. Ethical culture
- D. Risk assessment
Answer: C
NEW QUESTION 23
The generation and use of relevant, quality information to support the functioning of internal control is a principle related to which component of the Committee of Sponsoring Organizations of the Treadway Commissions (COSO) Internal Control-Integrated Framework (the Framework)?
- A. Risk assessment
- B. Information and communication
- C. Monitoring
- D. Control environment
Answer: A
NEW QUESTION 24
The objective of anti-fraud controls is to:
- A. Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk
- B. Completely eliminate inherent fraud risk
- C. Completely eliminate residual fraud risk
- D. Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.
Answer: C
NEW QUESTION 25
Jenny is a highly respected employee at XYZ Corp Her husbands gambling addiction has caused them to have a significant amount of debt Jenny begins stealing money from the company to cover her husbands gambling losses. This situation best illustrates which leg of the Fraud Triangle?
- A. Rationalization
- B. Perceived opportunity
- C. Perceived non-shareable financial need
- D. Perceived acquiescence
Answer: C
NEW QUESTION 26
Which of the following is FALSE regarding G20/OECD Principles of Corporate Governance (the Principles)?
- A. The Principles state that an entity's corporate governance framework should ensure the equitable treatment of all shareholders
- B. The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them
- C. The Principles are intended to be applicable in both developed economies and emerging markets
- D. The Principles state that an entity's corporate governance framework should encourage active cooperation between corporationfiand stakeholders in creating wealth.
Answer: C
NEW QUESTION 27
Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?
- A. Fraud examiners should form the engagement hypothesis without regard to the available preliminary information
- B. Professional skepticism means beginning all assignments with the belief that something is amiss
- C. Professional skepticism involves maintaining a mindset that no fraud has occurred
- D. Fraud examiners should not relax their skeptical attitudes even if there are no signs of fraudulent activity.
Answer: B
NEW QUESTION 28
Which of the following theories suggests that, when considering the possibility of violating a law. people are likely to ask themselves. "What would my family and friends think if they find out?
- A. Cognitive theory
- B. Social control theory
- C. Behavioral theory
- D. Routine activities theory
Answer: B
NEW QUESTION 29
Which of the following is NOT included in the five fraud risk management principles described
- A. Deploying preventive and detective fraud control activities to mitigate fraud risk
- B. Performing comprehensive fraud risk assessments to identify specific fraud schemes
- C. Communicating the expectations of those governing the fraud risk management program
- D. Developing one-time evaluations for each fraud risk management principle
Answer: D
NEW QUESTION 30
Which of the following statements regarding white-collar defendants is TRUE?
- A. They are more likely to be fined than to face prison terms as punishment
- B. The lower the offenders' social status, the more likely they are to be imprisoned
- C. They are less likely to insist on a trial than other offenders
- D. All of the above
Answer: A
NEW QUESTION 31
The findings of the 2018 Report to the Nations include all of the following EXCEPT:
- A. The median losses caused by executives are higher than those caused by staff-level employees
- B. The majority of employees who commit occupational fraud are first-lime offenders.
- C. More occupational frauds are committed by women than by men.
- D. The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is living beyond their means
Answer: A
NEW QUESTION 32
In identifying the inherent fraud risks that could apply to the organization the fraud risk assessment team should discuss
- A. All of the above
- B. Risks to the organization's reputation
- C. The organization's incentive programs
- D. The possibility of management override of controls
Answer: A
NEW QUESTION 33
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. Avoiding the risk
- B. Mitigating the risk
- C. Transferring the risk
- D. Assuming the risk
Answer: C
NEW QUESTION 34
According to the 2018 Report to the Nations.___________schemes are the most common form of occupational fraud, while_________schemes are the costliest form of occupational fraud
- A. Corruption; asset misappropriation
- B. Asset misappropriation; corruption
- C. Financial statement fraud, corruption
- D. Asset misappropriation; financial statement fraud
Answer: B
NEW QUESTION 35
Which of the following is FALSE regarding fraud examiners responsibilities under the ACFE Code of Professional Ethics?
- A. Confidential information provided to fraud examiners by their clients is considered privileged and therefore legally exempt from disclosure in all circumstances
- B. If fraud examiners become aware of a situation that might appear to others as though they have a conflict of interest they should immediately disclose the situation to company management
- C. Fraud examiners must obtain and document evidence in a manner that ensures that the chain of custody is preserved
- D. In determining what information to include in a fraud examination report, fraud examiners should try to decide what users will consider important and material
Answer: D
NEW QUESTION 36
Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?
- A. Tying employee compensation to reasonable organizational performance goals
- B. Establishing well-defined job descriptions to facilitate performance evaluations
- C. Evaluating employee performance based solely on productivity and profit
- D. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks
Answer: C
NEW QUESTION 37
In response to an employee s failure to meet performance expectations. a manager demotes the employee to a junior-level position This is an example of what type of behavioral response?
- A. Punishment
- B. Negative reinforcement
- C. None of the above
- D. Positive reinforcement
Answer: C
NEW QUESTION 38
Which of the following statements is FALSE?
- A. Conducting covert audits is among the most effective fraud prevention methods
- B. Controls do little good in preventing theft and fraud if those at risk do not know of their presence
- C. Educating employees about company hotlines and reporting programs increases their perception of detection
- D. Most experts agree that it is harder to detect frauds than to prevent them
Answer: B
NEW QUESTION 39
According to Silk and Vogel's research, business leaders rationalize legal violations by asserting that the damage done by the violations is diffused among a large number of parties.
- A. True
- B. False
Answer: A
NEW QUESTION 40
Which of the following statements about the fraud risk assessment process is MOST ACCURATE"?
- A. The fraud risk assessment is most effective when management s influence on the process is limited.
- B. If the individuals conducting the fraud risk assessment truly believe that fraud could not happen at the organization the assessment process should reflect that belief.
- C. The assessment team must be perceived as independent and objective by others for the assessment to be effective
- D. To ensure the independence of the team members a fraud risk assessment must be conducted by a consultant or other external party.
Answer: D
NEW QUESTION 41
The theory of differential association is used frequently to explain white-collar criminality Which of the following is NOT one of the assertions or principles of differential association?
- A. Criminal behavior is acquired through participation with intimate personal groups
- B. Criminal behavior is learned using the same mechanisms as other learning
- C. The process of learning criminal behavior Is the same as pure imitation
- D. Criminal behavior is learned from other people in a process of communication
Answer: A
NEW QUESTION 42
The internal auditor s fraud-related responsibilities include which of the following?
- A. Attesting that the organization s financial statements are free of material misstatements caused by fraud
- B. Reporting to regulators regarding the entity's vulnerability to fraud
- C. Overseeing managements actions to manage fraud risks
- D. Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program
Answer: B
NEW QUESTION 43
Effectively documenting and communicating organizational hierarchies, including the proper flow of information, can be a helpful tool in preventing fraud
- A. True
- B. False
Answer: A
NEW QUESTION 44
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