CFE-Fraud-Prevention-and-Deterrence | What Downloadable CFE-Fraud-Prevention-and-Deterrence Free Download Is

NEW QUESTION 1
Independent auditors play a critical role in enhancing the reliability of financial information by financial position and performance in compliance with accepted accounting standards.

• A. True
• B. False

Answer: A

NEW QUESTION 2
For its compliance program lo be effective, an organization must perform procedures to ensure management hires only ethical individuals who exercise a substantial measure of discretion in acting on the organization s behalf.

• A. True
• B. False

Answer: A

NEW QUESTION 3
Which of the following is FALSE regarding the fraud risk assessment team?

• A. The team members should have experience in gathering and eliciting information
• B. The team size should be limited to a maximum of three individuals.
• C. The team members might include both internal and external sources
• D. The team should consist of individuals with diverse knowledge, skills, and perspectives.

Answer: B

NEW QUESTION 4
Jane, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination at XYZ Company. Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently. XYZ's management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management's request

• A. True
• B. False

Answer: B

NEW QUESTION 5
Which of the following is FALSE regarding a fraud risk assessment?

• A. The designation of an area as being high risk does not conclusively mean that fraud is occurring there
• B. The objective of the assessment is to provide an estimate of the organization s fraud losses
• C. The assessment should be used to improve employee fraud awareness
• D. The assessment team should consider how employees behave as part of its assessment

Answer: B

NEW QUESTION 6
Consistently punishing perpetrators can be an effective fraud prevention mechanism.

• A. True
• B. False

Answer: B

NEW QUESTION 7
Which of the following statements about the fraud risk assessment process is MOST ACCURATE"?

• A. To ensure the independence of the team members a fraud risk assessment must be conducted by a consultant or other external party.
• B. The assessment team must be perceived as independent and objective by others for the assessment to be effective
• C. If the individuals conducting the fraud risk assessment truly believe that fraud could not happen at the organization the assessment process should reflect that belief.
• D. The fraud risk assessment is most effective when management s influence on the process is limited.

Answer: A

NEW QUESTION 8
Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

• A. Professional skepticism involves maintaining a mindset that no fraud has occurred
• B. Fraud examiners should not relax their skeptical attitudes even if there are no signs of fraudulent activity.
• C. Fraud examiners should form the engagement hypothesis without regard to the available preliminary information
• D. Professional skepticism means beginning all assignments with the belief that something is amiss

Answer: D

NEW QUESTION 9
The objectives of a fraud risk management program include

• A. Proactively identifying fraud risks
• B. Limiting the damage caused by fraud occurrences
• C. Punishing fraud perpetrators
• D. All of the above

Answer: D

NEW QUESTION 10
The objective of anti-fraud controls is to:

• A. Completely eliminate residual fraud risk
• B. Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk
• C. Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.
• D. Completely eliminate inherent fraud risk

Answer: A

NEW QUESTION 11
Which of the following is FALSE regarding G20/OECD Principles of Corporate Governance (the Principles)?

• A. The Principles state that an entity's corporate governance framework should ensure the equitable treatment of all shareholders
• B. The Principles state that an entity's corporate governance framework should encourage active cooperation between corporationfiand stakeholders in creating wealth.
• C. The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them
• D. The Principles are intended to be applicable in both developed economies and emerging markets

Answer: D

NEW QUESTION 12
The International Organization of Securities Commissions' (IOSCO) Principles for Auditor Oversight states that auditor oversight should involve a regular review process designed to ascertain whether audit firms adhere to quality control policies and procedures.

• A. True
• B. False

Answer: A

NEW QUESTION 13
As part of her audit of ABC Corp . Rachel, a CPA. is identifying the risks of material misstatement due to fraud As part of this task, she should evaluate any unexpected relationships that she identified in performing analytical procedures.

• A. True
• B. False

Answer: A

NEW QUESTION 14
The internal auditor s fraud-related responsibilities include which of the following?

• A. Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program
• B. Attesting that the organization s financial statements are free of material misstatements caused by fraud
• C. Reporting to regulators regarding the entity's vulnerability to fraud
• D. Overseeing managements actions to manage fraud risks

Answer: C

NEW QUESTION 15
Criminologist Charles McCaghy has slated that profit pressure is the single most compelling factor behind deviance by organizations

• A. True
• B. False

Answer: A

NEW QUESTION 16
In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss This response is known as:

• A. Mitigating the risk
• B. Assuming the risk
• C. Avoiding the risk
• D. Transferring the risk

Answer: D

NEW QUESTION 17
Sofia, a Certified Fraud Examiner (CFE). look an introductory class in computer forensics When a client thought there might be evidence of a crime on his hard drive. Sofia decided to conduct a forensic examination of the hard drive even though she had no experience or advanced training in this area Sofia's conduct would likely be a violation of the ACFE Code of Professional Ethics

• A. True
• B. False

Answer: A

NEW QUESTION 18
Which of the following is TRUE regarding the communication of the fraud risk assessment process?

• A. The communication should be in the form of a personalized message from the assessment sponsor
• B. The communication should actively encourage employees to participate in the assessment process
• C. The communication should be visibly disseminated throughout the business
• D. All of the above

Answer: D

NEW QUESTION 19
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