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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 BEST classified as a type of external fraud risk?

A) Adding ghost employees to payroll
B) Collusion between contractors
C) Reporting revenue in the wrong period
D) Embezzling incoming customer payments

2. Which of the following is TRUE regarding prosecutions of white-collar criminals?

A) When fraud cases are handled internally, an employee is more likely to be suspended or put on probation than to be terminated for their crime.
B) The primary reason organizations decline to prosecute fraud cases is a belief that their internal discipline methods are sufficient
C) Only a small percentage of perpetrators are punished when an organization deals with a fraud case internally.
D) Most fraud cases are only handled internally and are not referred to law enforcement for prosecution

3. Fraud risks related to regulatory and legal misconduct include all of the following EXCEPT:

A) Anti-competitive practices
B) Insider trading
C) Fraudulent customer payments
D) Conflicts of interest

4. 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 provide a written communication about the findings to those charged with governance.
C) Peter should make a public announcement that he is withdrawing from the audit engagement.
D) Peter should discreetly work with senior management to correct the underlying internal control deficiencies.

5. Having specialized departments within a company often increases the overall risk ot traud by the organization.

A) True
B) False

Solutions: