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

Independent auditors play a critical role in enhancing the reliability of financial information by financial position and performance in compliance with accepted accounting standards.

1. A. True
2. B. False

Correct Answer: A

In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.

1. A. True
2. B. False

Correct Answer: A

The findings of the 2018 Report to the Nations include all of the following EXCEPT:

1. A. More occupational frauds are committed by women than by men.
2. B. The majority of employees who commit occupational fraud are first-lime offenders.
3. C. The median losses caused by executives are higher than those caused by staff-level employees
4. D. The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is living beyond their means

Correct Answer: C

Management at ABC Corp. is assessing the company s ethical tone and how it affects the organization s fraud risk. To most effectively reinforce an anti-fraud culture, management should

1. A. Create an environment in which employees feel safe challenging managements decisions
2. B. Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
3. C. Implement two separate sets of ethics policies one for management and one for employees
4. D. All of the above

Correct Answer: D

A report by a fraud examiner is privileged from disclosure by anyone other than the client

1. A. True
2. B. False

Correct Answer: A