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

During a fraud risk assessment, (he assessment (earn is seeking information on the ethical tone set by upper and middle managers The team members determine that, for this task, they would like to get candid
one-on-one feedback from employees away from their peers. Which of the following techniques would be most helpful for them to use in gathering this information?

1. A. Surveys
2. B. Anonymous feedback mechanisms
3. C. Interviews
4. D. Focus groups

Correct Answer: B

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.

1. A. True
2. B. False

Correct Answer: A

Which of the following statements regarding document retention policies (DRPs) is TRUE?

1. A. Document retention policies do not need to include protocols for preserving electronic documents as most IT systems automatically preserve copies of such data
2. B. When establishing a document retention policy, management should consider any industry-specific rules for documenting and regaining records
3. C. An effective document retention policy permits the organization to continue the destruction of documents when faced with potential litigation
4. D. All of the above

Correct Answer: D

Which of the following is TRUE regarding the communication of the fraud risk assessment process?

1. A. The communication should be in the form of a personalized message from the assessment sponsor
2. B. The communication should actively encourage employees to participate in the assessment process
3. C. The communication should be visibly disseminated throughout the business
4. D. All of the above

Correct Answer: D

Which of the following is a detective anti-fraud control?

1. A. Separation of duties
2. B. Hiring policies and procedures
3. C. Independent reconciliations
4. D. Fraud awareness training

Correct Answer: A