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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. According to the differential reinforcement theory, behavior is strengthened when which of the following is applied?

A) Loss of reward
B) Positive reinforcement
C) Negative stimuli
D) Punishment

2. Which of the following is TRUE regarding government auditors' responsibilities to report evidence of potential fraud uncovered during an audit of a public-sector organization's financial statements?

A) Government auditors' reporting requirements pertaining to fraud are substantially the same as those for external auditors in the private sector.
B) Government auditors are legally prohibited from reporting evidence of potential fraud to any parties outside the organization being audited.
C) The requirements for government auditors to report evidence of potential fraud depend on the jurisdiction and the specific audit mandate.
D) All government auditors maintain the same requirements for reporting evidence of potential fraud uncovered during a public-sector financial statement audit.

3. Which statement BEST describes fraud deterrence?

A) Fraud deterrence seeks to reduce the likelihood of fraud through prevention and detection measures
B) Fraud deterrence focuses only on punishment after fraud occurs
C) Fraud deterrence eliminates the need for internal controls
D) Fraud deterrence guarantees fraud will never occur

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

A) A process aimed at proactively identifying, assessing, and managing an organization's vulnerabilities to fraud by both internal and external sources.
B) The system that is designed and implemented to eliminate all uncertainty and risk while also ensuring the achievement of organizational goals.
C) 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.
D) 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.

5. Po, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination. She did not find fraud, but in Po's opinion, there were several internal control deficiencies that, if not corrected, could facilitate the occurrence of fraud. Under the ACFE Code of Professional Ethics, which of the following is TRUE?

A) Po may include her opinion on the internal controls in her report to management because it is a technical matter.
B) Po may not include her opinion on the internal controls in her report to management because that is not what she was hired to assess.
C) Po may include her opinion on the internal controls in her report to management only if management agrees to compensate her for the addition.
D) Po may include her opinion on the internal controls in her report to management only if she amends her contract.

Solutions: