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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 corporate governance?

A) Corporate governance's primary purpose is to ensure the accuracy of the organization's financial reports
B) An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization
C) Fraud risk management is considered to be the foundation of effective corporate governance
D) Effective corporate governance practices are most necessary in an organization in which the owners are also the individuals responsible for setting the corporate strategy.

2. In response to an employee's failure to meet performance expectations, a manager demotes the employee to a junior-level position. This is an example of what type of behavioral response?

A) Negative reinforcement
B) None of the above
C) Positive reinforcement
D) Punishment

3. According to ACFE research, which of the following is TRUE regarding the three major categories of occupational fraud?

A) Corruption schemes are the costliest category of occupational fraud.
B) Financial statement fraud schemes are the most common category of occupational fraud.
C) Identity theft is both the most common and costliest category of occupational fraud.
D) Asset misappropriation schemes are the most common category of occupational fraud.

4. Which of the following scenarios would MOST LIKELY be considered a violation of the ACFE Code of Professional Ethics?

A) Riva, a CFE, uncovered material internal control deficiencies that were material but unrelated to the kickback scheme she was investigating. In her final report to management, Riva included information about the deficiencies despite their being unrelated to the situation she was hired to investigate.
B) All of the above are violations.
C) Derrick, a CFE, was hired by a client to conduct a fraud examination but found nothing abnormal.
A year later, he received a court order to provide the client's file to the court. Derrick complied with the court order despite not having the client's authorization to provide the file.
D) Dee, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she rushed to complete the investigation, she overlooked key items of evidence and failed to uncover a fraud scheme.

5. A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?

A) The objectives of the audit are likely narrower than those of a private-sector financial statement audit.
B) The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement
C) In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.
D) The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.

Solutions: