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

1. According to professional auditing standards, auditors should do which of the following as part of addressing the assessed risks of material misstatement due to fraud in the financial statements?

A) Disregard the entity's selection and application of accounting policies concerning complex transactions
B) All of the above
C) Consider the knowledge, skill, and ability levels of the individuals who are assigned significant audit responsibilities
D) Incorporate an element of predictability in the selection of auditing procedures to be performed

2. Joanna is leading the fraud risk assessment process for her organization. Which of the following considerations about the fraud risk assessment process is MOST ACCURATE and should be incorporated into Joanna's plans?

A) To ensure the independence of the team members, a consultant or another external party must conduct the fraud risk assessment.
B) The fraud risk assessment is most effective when management's influence on the process is limited.
C) The fraud risk assessment can be conducted effectively by people inside or outside of the organization.
D) If the individuals conducting the fraud risk assessment believe that fraud could not happen within the organization, then the assessment process should reflect that belief.

3. Which of the following is one of the assertions or principles of the theory of differential association?

A) Criminal behavior is learned using the same mechanisms as other learning.
B) Criminal behavior is explained by an individual's general needs and values.
C) Criminal behavior is learned through a process that is the same as imitation.
D) Criminal behavior is acquired through casual interactions in large groups.

4. Daniela, an independent Certified Fraud Examiner (CFE), was hired by Charles, executive director of a nonprofit organization, to investigate a straightforward embezzlement case.
Duringthe investigation, Daniela learns that Charles is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Daniela should:

A) Resign from the engagement.
B) Not disclose the information about Charles.
C) Tell the nonprofit's board of trustees about Charles
D) Report Charles to law enforcement

5. In response to a risk identified during a fraud risk assessment, management decides to implement additional internal control measures. This response is known as:

A) Assuming the risk
B) Transferring the risk
C) Mitigating the risk
D) Avoiding the risk

Solutions: