CFE-Fraud-Prevention-and-Deterrence Free Practice Test

Employee anti-fraud education should:

1. A. Include examples of prior employee misconduct and how those situations were handled
2. B. Include descriptions of the procedures that management uses to detect fraud.
3. C. Be restricted to formal educational mechanisms to reinforce the importance of the message
4. D. Be presented by organizational executives or anti-fraud professionals only

Correct Answer: A

Which of the following is NOT a responsibility of the organization s board of directors?

1. A. Acting as guardians of the organization s resources and assets
2. B. Managing the performance of employees charged with carrying out business activities
3. C. Assessing the strategy and underlying purpose of management's decisions and actions
4. D. Serving as the middlemen between shareholders and management

Correct Answer: D

Which of the following is NOT a way that an organization's fraud risk assessment should be incorporated into the audit process''

1. A. It should be used to replace the auditor's own identification and assessment of fraud risks.
2. B. It should be used to assess whether there is a moderate-to-high risk of management override of internal controls within the moderate-to-high fraud risk areas
3. C. It should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.
4. D. It should be used to design audit tests to evaluate whether the controls are operating effectively

Correct Answer: A

Criminologist Charles McCaghy has slated that profit pressure is the single most compelling factor behind deviance by organizations

1. A. True
2. B. False

Correct Answer: A

Maria conducted a fraud examination that led to a valid confession of guilt from Rita. In Maria's verbal report to her superiors, she stated that, in her opinion. "Rita is guilty of embezzlement." Maria has just violated the ACFE Code of Professional Ethics.

1. A. True
2. B. False

Correct Answer: B