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

In a company with all of the following parties, who should have primary responsibility for the oversight of the organization s compliance program?

1. A. The board of directors
2. B. General counsel
3. C. Internal audit
4. D. The chief ethics officer

Correct Answer: A

According to modern criminological studies, which of the following is the determinant aspect of white-collar crime'?

1. A. Organizational opportunity
2. B. Absence of risk factors
3. C. Potential legal punishment
4. D. Social status

Correct Answer: D

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

1. A. True
2. B. False

Correct Answer: A

Which of the following is NOT one of the three general approaches used to control corporate crime?

1. A. Consumer action to force change
2. B. Voluntary changes in corporate attitudes and structure
3. C. Media blacklisting of the organization
4. D. Strong intervention of the government

Correct Answer: B

A corporation can generally be held criminally responsible for criminal acts committed by its employees even if those in management had no knowledge of or participation in the underlying events.

1. A. True
2. B. False

Correct Answer: A