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

1. Which of the following statements regarding best practices that organizations can take to protect and support whistleblowers is MOST ACCURATE?

A) Organizations should emphasize that rules regarding whistleblower protections are only intended for lower level employees who might be more vulnerable to retaliation.
B) Organizations should establish formal consequences that are to be imposed upon employees at the company who retaliate against a whistleblower.
C) Organizations should implement a clear whistleblower policy that lists out every type of misconduct that has ever been reported at the company.
D) Organizations should publicize their whistleblower procedures internally but should avoid communicating any procedural information to parties outside of the organization.

2. During an external audit of an organization's financial statements. Peter, the external auditor, uncovers significant internal control deficiencies at the audit client's organization. He believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Peter do with regard to these findings?

A) Peter should report the findings in writing directly to the appropriate regulatory agencies
B) Peter should make a public announcement that he is withdrawing from the audit engagement.
C) Peter should provide a written communication about the findings to those charged with governance.
D) Peter should discreetly work with senior management to correct the underlying internal control deficiencies.

3. Which of the following is a TRUE statement regarding the components of the Committee of Sponsoring Organizations of the Treadway Commission's COSO Internal Control--Integrated Framework the Framework?

A) Ethical culture is one of the primary components of internal control identified in the Framework.
B) Determining the effectiveness of an organization's internal control system involves assessing whether all of the identified components are operating together in an integrated manner.
C) Determining the effectiveness of an organization's internal control system involves assessing whether the identified components meet minimum regulatory requirements.
D) The Framework identifies 12 components of internal control that must all be in place for the internal control system to be effective.

4. The theory of differential association is used frequently lo explain white-collar criminality. Which of the following is NOT one of the assertions or principles of differential association?

A) Criminal behavior is explained by an individual's general needs and values.
B) Criminal behavior is learned from other people in a process of communication.
C) Criminal behavior is acquired through participation with intimate personal groups.
D) Criminal behavior is learned using the same mechanisms as other learning

5. Terrel, a Certified Fraud Examiner (CFE), unknowingly violates the law one night. Which of the following statements about the ACFE Code of Professional Ethics is TRUE?

A) This conduct would not be a violation of the ACFE Code of Professional Ethics under any circumstances.
B) This conduct would be a violation of the ACFE Code of Professional Ethics.
C) This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel knew the conduct was illegal.
D) This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel is arrested.

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