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

1. Which of the following controls would MOST effectively reduce the risk of fictitious vendors being added to the accounting system?

A) Encrypting vendor payment files
B) Increasing employee bonuses
C) Annual inventory counts
D) Independent review of vendor setup requests with supporting documentation

2. To address an employee's consistent failure to meet deadlines, a manager removes the employee's ability to work from home This is an example of what type of behavioral response?

A) Positive reinforcement
B) Punishment
C) Negative reinforcement
D) None of the above

3. Which of the following components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance refers to an organization's ability to continually assess how well its enterprise risk management (ERM) capabilities and practices have increased value over time and how they will continue to drive value for the organization?

A) Risk tolerance
B) Strategy and objective-setting
C) Review and revision
D) Governance and culture

4. In the area of criminological theory, deterrence is the theory that tries to prevenl crime by using the threat of criminal sanctions.

A) True
B) False

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

A) ISA 240 creates requirements for management regarding the establishment of a holistic fraud risk management program.
B) ISA 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization.
C) ISA 240 establishes standards regarding the auditor's responsibility to consider fraud in an audit of financial statements.
D) ISA 240 requires auditors to effectively raise awareness about the risk of fraud within the audited organization.

Solutions: