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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:

1. According to Diane Vaughan, which of the following factors increases an organization's inherent inclination toward committing crime?

A) All of the above
B) Management links employee performance goals with company performance goals
C) Management seeks out diversity in attitudes and perspectives when hiring employees
D) Rewards are given to employees who challenge the status quo

2. A fraud examiner is preparing a report. Which action would violate professional standards?

A) Identifying control weaknesses observed during the examination
B) Reporting conclusions supported by evidence
C) Recommending control improvements
D) Expressing an opinion that a suspect is guilty of fraud

3. ABC. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that ABC is subject to?

A) ABC is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions
B) ABC is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.
C) ABC must comply with specific listing standards for the stock exchange(s) on which it is listed
D) ABC is required to comply with G20/OECD Principles of Corporate Governance

4. Jody has been working at ABC Corp. for ten years. He steals funds from the company and tells himself that the company owes it to him for his "unrewarded hard work and loyalty" This situation BEST illustrates which leg of the Fraud Triangle?

A) Lack of personal Integrity
B) Perceived opportunity
C) Perceived non-shareable financial need
D) Rationalization

5. Which of the following is one of the four recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

A) Provide adequate resources and authority to the internal audit function
B) Have a mandatory independent finance committee
C) Develop a written charter for the audit committee
D) Assign oversight of the hotline reporting program to company shareholders

Solutions: