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

1. For Its compliance program to be effective, an organization must perform procedures to ensure management hires only ethical Individuals who exercise a substantial measure of discretion In acting on the organization's behalf

A) False
B) True

2. According to Diane Vaughan, which of the following factors increases an organization's inherent inclination toward committing crime?

A) Rewards are given to employees who challenge the status quo
B) All of the above
C) Management seeks out diversity in attitudes and perspectives when hiring employees
D) Management links employee performance goals with company performance goals

3. Josie is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While conducting her audit procedures, she discovers evidence that Carissa, the company's chief financial officer, has been fraudulently manipulating the financial statements. Which of the following is Josie's BEST response to these findings?

A) Josie should not disclose her findings to anyone until after she has conducted a full investigation.
B) Josie should report her findings to those charged with governance of the organization.
C) Josie should confront Carissa with her audit findings and try to get a confession.
D) Josie should immediately report her findings to the local media.

4. The objective of anti-fraud controls is to:

A) Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk
B) Completely eliminate inherent fraud risk.
C) Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.
D) Completely eliminate residual fraud risk

5. Warren wants to decrease the amount of cash register discrepancies among the cashiers at his small business. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Warren to encourage the cashiers to reduce their discrepancies and keep their cash drawers balanced?

A) Take away an hour of paid time off from an employee each time their cash drawer is not balanced.
B) Publicly praise employees every time their cash drawers are balanced.
C) Deduct an hour's worth of pay for anyone whose cash drawer is not perfectly reconciled each day.
D) Demote employees who continue to have reconciliation discrepancies.

Solutions: