Renewal Certified Fraud Examiner - Fraud Prevention And Deterrence Exam CFE-Fraud-Prevention-and-Deterrence Training Materials

NEW QUESTION 1
White, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination. She did not find fraud, but. in White's opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence of fraud. Under the ACFE Code of Professional Ethics. White may include her opinion on the controls in her report to management

• A. True
• B. False

Answer: A

NEW QUESTION 2
In identifying the inherent fraud risks that could apply to the organization the fraud risk assessment team should discuss

• A. The possibility of management override of controls
• B. Risks to the organization's reputation
• C. The organization's incentive programs
• D. All of the above

Answer: D

NEW QUESTION 3
Which of the following is an example of organizational crime?

• A. doctor conspiring with patients to file false health care insurance claims
• B. A salesman offering bribes to secure a contract
• C. An accounting clerk forging company checks to herself
• D. Management of several construction companies engaging in bid rigging

Answer: C

NEW QUESTION 4
Which of the following theories suggests that, when considering the possibility of violating a law. people are likely to ask themselves. "What would my family and friends think if they find out?

• A. Cognitive theory
• B. Social control theory
• C. Behavioral theory
• D. Routine activities theory

Answer: B

NEW QUESTION 5
Which of the following is among the audit committee s primary responsibilities related to fraud risk management?

• A. Understanding how internal and external audit strategies address fraud risk
• B. Designing the fraud risk management program
• C. Punishing fraud perpetrators discovered through fraud risk management activities
• D. Implementing the fraud risk management program

Answer: B

NEW QUESTION 6
The Public Interest Oversight Board (PIOB) is the global body responsible for establishing international corporate governance standards.

• A. True
• B. False

Answer: B

NEW QUESTION 7
As part of her audit of ABC Corp . Rachel, a CPA. is identifying the risks of material misstatement due to fraud As part of this task, she should evaluate any unexpected relationships that she identified in performing analytical procedures.

• A. True
• B. False

Answer: A

NEW QUESTION 8
Which of the following is TRUE regarding the reporting of the fraud risk assessment results7

• A. A fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified
• B. The fraud risk assessment report should be delivered in a style most suited to the language of the business
• C. The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding
• D. All of the above

Answer: D

NEW QUESTION 9
According to International Auditing Standard (ISA) 240. the two types of intentional financial statement misstatements that are relevant to the auditor are

• A. Misstatements resulting from fraudulent financial reporting and misstatements resulting frommisappropriation of assets
• B. Misstatements resulting from revenue manipulation and misstatements resulting from expense manipulation
• C. Misstatements affecting the income statement and misstatements affecting the balance sheet
• D. Immaterial misstatements and material misstatements

Answer: C

NEW QUESTION 10
Which of the following is TRUE regarding an organization s ethics program?

• A. To be most effective, access to the organization s ethics policy should be restricted to employees and other internal parties only
• B. In designing the ethics program, management should consider whether the organization currently has any ethical leadership issues
• C. An effective written ethics policy alone is sufficient to communicate managements ethical philosophy and serve as a comprehensive ethics program
• D. All of the above

Answer: D

NEW QUESTION 11
Employees should be kepi unaware that management is watching for lifestyle and behavior changes in staff members that might indicate fraud

• A. True
• B. False

Answer: A

NEW QUESTION 12
According to the differential reinforcement theory, behavior is weakened when positive rewards are gained or punishment is avoided

• A. True
• B. False

Answer: A

NEW QUESTION 13
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. Punishment
• C. Positive reinforcement
• D. None of the above

Answer: D

NEW QUESTION 14
According to the 2018 Report to the Nations, which of the following is the most common method by which frauds are detected?

• A. Confession
• B. External audit
• C. Tips
• D. Internal audit

Answer: C

NEW QUESTION 15
Which of the following is FALSE regarding G20/OECD Principles of Corporate Governance (the Principles)?

• A. The Principles state that an entity's corporate governance framework should ensure the equitable treatment of all shareholders
• B. The Principles state that an entity's corporate governance framework should encourage active cooperation between corporationfiand stakeholders in creating wealth.
• C. The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them
• D. The Principles are intended to be applicable in both developed economies and emerging markets

Answer: D

NEW QUESTION 16
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