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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:
1. Which of the following is the MOST EFFECTIVE way for management to respond to incidents of fraud within an organization?
A) Punishing frauds only if they have a significant financial impact.
B) Emphasizing to all employees that the company maintains a policy of zero tolerance for fraud.
C) Maintaining a policy that allows employees one warning before they are terminated for committing fraud
D) Keeping all known incidents of fraud private to protect the identities of parties involved.
2. Which of the following is NOT considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics?
A) Undertaking engagements for both sides in a case of alleged vendor overbilling
B) Accepting an assignment to secretly infiltrate the fraud examiner's employing organization and transmit inside information to another party
C) Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
D) Accepting an assignment to evaluate the anti-fraud controls at an organization in which the fraud examiner is a shareholder, provided the fraud examiner's ownership interest is disclosed
3. Julia, an internal auditor, is formalizing a process to evaluate the effectiveness of the company's control system over time, including both ongoing evaluations and periodic, separate evaluations.
Julia's initiative BEST pertains to the component of the Committee of Sponsoring Organizations of the Treadway Commission's COSO Internal Control--Integrated Framework the Framework:
A) Risk assessment
B) Control environment
C) Control activities
D) Monitoring
4. A professional organization's code of conduct serves which of the following purposes?
A) A code offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.
B) A code provides answers to all ethical dilemmas that the organization's members might encounter.
C) A code acts as a substitute for legal and regulatory requirements that apply to the profession.
D) A code facilitates practical enforcement and internal discipline throughout a profession.
5. Joanna is leading the fraud risk assessment process for her organization. Which of the following considerations about the fraud risk assessment process is MOST ACCURATE and should be incorporated into Joanna's plans?
A) The fraud risk assessment can be conducted effectively by people inside or outside of the organization.
B) To ensure the independence of the team members, a consultant or another external party must conduct the fraud risk assessment.
C) The fraud risk assessment is most effective when management's influence on the process is limited.
D) If the individuals conducting the fraud risk assessment believe that fraud could not happen within the organization, then the assessment process should reflect that belief.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: A |



