CFE-FRAUD-PREVENTION-AND-DETERRENCE Exam Questions in PDF and Online

QUESTION: 11

Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?

Including ethics-based metrics as a component of performance evaluations
Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks
Establishing loosely defined job descriptions that allow employees flexibility in their roles
Tying employee compensation to reasonable organizational performance goals

Answer(s): C

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QUESTION: 12

According to modern criminological studies, which of the following is the determinant aspect of white-collar crime?

Cultural ties
Criminal history
Organizational opportunity
Social class

Answer(s): C

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QUESTION: 13

Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.
Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.
Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file. Susan complied with the court order, even though she did not have the client's authorization to do so.
All of the above are violations

Answer(s): B

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Patrick is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs).
While undertaking his audit procedures, he discovers evidence that senior management has been fraudulently manipulating the financial statements.
Which of the following is Patrick's BEST response to these findings?

Patrick should confront management with his audit findings and try to get a confession.
Patrick should immediately report his findings to local law enforcement authorities.
Patrick should not disclose his findings to any other parties due to client confidentiality
Patrick should report his findings to those charged with governance of the organization.

Answer(s): D

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