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

1. Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?

A) ISA 240 provides guidance regarding the auditor's responsibility to consider fraud in an audit of financial statements.
B) ISA 240 requires auditors to effectively educate the staff about the risk of fraud within the audited organization.
C) ISA 240 establishes auditors as being primarily responsible for implementing anti-fraud internal controls within an organization.
D) ISA 240 creates requirements for the board of directors regarding the establishment of a holistic fraud risk management program.

2. According to Steve Albrecht's research,______is the most common personal characteristic motivating fraudsters, and ________ is the most common organization-environment factor motivating fraudsters.

A) Revenge: too much trust in key employees
B) Desire for recognition, lack of separation of duties
C) Living beyond their means, too much trust in key employees
D) High personal debt; lack of separation of duties

3. Christopher is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While conducting his audit procedures, he discovers evidence of a fraud involving Jeffrey, the company's chief executive officer. Which of the following is Christopher's BEST response to these findings?

A) Christopher should confront Jeffrey with his audit findings and try to get a confession.
B) Christopher should report his findings to those charged with governance of the organization.
C) Christopher should not disclose his findings to any other parties due to legal liability.
D) Christopher should immediately report his findings to the relevant government authority.

4. Rosie, a Certified Fraud Examiner (CFE), conducted a fraud examination for her company that led to a confession of guilt from Dean. Which of the following statements in Rosie's verbal report to management would violate the ACFE Code of Professional Ethics?

A) "Dean is guilty of embezzlement."
B) "The evidence does not support Dean's confession."
C) "Dean confessed to embezzlement."
D) "Dean's confession is supported by the evidence."

5. According to International Organization for Standardization (ISO) 31000:2018, an effective and efficient risk management program contains all of the following principles EXCEPT:

A) The program facilitates continuous improvement.
B) The program takes human and cultural factors into account.
C) The program is customized and proportionate to the organization's operations and objectives.
D) The program is static and consistent, even during times of organizational change.

Solutions: