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

1. Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?

A) They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.
B) They state that a corporate governance framework should require disclosure of all financial information to the organization's investors.
C) They are intended to be applicable in developed economies but not in emerging markets.
D) They assert that a corporate governance framework should ensure the equitable treatment of all the organization's shareholders.

2. According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO), internal control is defined as:

A) The system enacted to ensure effective oversight of the board of directors, management, and all other parties responsible for an organization's direction, operations, and performance.
B) The system that is designed and implemented to eliminate all uncertainty and risk while also ensuring the achievement of organizational goals.
C) A process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.
D) A process aimed at proactively identifying, assessing, and managing an organization's vulnerabilities to fraud by both internal and external sources.

3. Which of the following is a TRUE statement regarding the role of a well-designed organizational structure within an anti-fraud program?

A) A confused organizational structure makes it harder for a fraudster to perpetrate and conceal their misdeeds.
B) It is best to avoid formally documenting organizational structures to limit fraudsters' ability to circumvent oversight controls.
C) Communicating the proper flow of information to everyone in the organization can increase the organization's vulnerability to fraud.
D) Flowcharts displaying departmental structures can be a helpful tool in communicating the proper flow of information as part of fraud prevention efforts.

4. During the course of a fraud examination. While, an employee of the ABC Corp.. approaches Blue, a Certified Fraud Examiner (CFE), and tells Blue that she wishes to furnish information in confidence.
Blue also is employed by the ABC Corp. Blue should:

A) Take White's request straight to ABC Corp.'s management
B) Agree that the information will be held in confidence, even though Blue knows it will not be
C) Tell White that she will try to keep the information as confidential as possible
D) Not agree to the request for confidentiality

5. Which of the following is FALSE regarding a background check policy for employees?

A) At a minimum, management should conduct a background check on any candidate who will have constant access to cash, checks, and credit card numbers, or other easily stolen items.
B) Where permitted by law, management should run a background check on any existing employee who is being promoted to a position that includes access to sensitive or valuable company resources, even if a background check was run on the individual at the time of hire
C) As part of the screening process, management should contact the references provided by the job candidate.
D) When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.

Solutions: