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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?

A) ISA 240 establishes standards regarding the auditor's responsibility to consider fraud in an audit of financial statements.
B) ISA 240 creates requirements for management regarding the establishment of a holistic fraud risk management program.
C) ISA 240 requires auditors to effectively raise awareness about the risk of fraud within the audited organization.
D) ISA 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization.

2. According to ACFE research, which of the following is the MOST COMMON method for detecting occupational fraud?

A) Tips
B) Document examination
C) Internal audit
D) Management review

3. Which of the following statements is MOST ACCURATE regarding an effective system of anti- fraud controls?

A) It deters fraudsters by increasing the perception that fraud will be detected.
B) It prioritizes implementing detective controls over preventive controls.
C) It focuses more on preventive controls than detective controls.
D) It fully eliminates the risk of fraud by removing opportunities for misbehavior.

4. According to ACFE research, which of the following is TRUE?

A) Most employees who commit occupational fraud are first-time offenders.
B) Complaints about family problems is the most reported behavioral red flag displayed by fraud perpetrators.
C) Men and women commit similar amounts of occupational fraud.
D) Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.

5. Management at ABC Company wants to transfer one of the risks identified during the company's fraud risk assessment process. Which of the following actions would be MOST APPROPRIATE to support this response?

A) Implementing additional preventive and detective controls
B) Deciding not to implement any responsive measures
C) Purchasing fidelity insurance to protect against the associated risk of loss
D) Discontinuing the underlying activity completely

Solutions: