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| Section | Objectives |
|---|
| Fraud Prevention and Deterrence | - Corporate Governance
- 1. Roles and responsibilities
- 2. Board oversight
- 3. Internal controls
- Auditors' Role
- 1. Fraud detection responsibilities
- Management's Role
- 1. Building anti-fraud programs
- 2. Fraud risk assessment
- Ethics
- 1. Ethical considerations in fraud examination
|
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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q167-Q172):
NEW QUESTION # 167
Timothy, a new Certified Fraud Examiner (CFE), has been tasked with his first fraud examination engagement. To exercise appropriate professional skepticism as he conducts the engagement, Timothy should:
- A. Maintain professional skepticism that can only be dispelled by evidence.
- B. Form the engagement hypothesis without consideration for the nature of the assignment.
- C. Begin the engagement with the belief that no fraud has occurred.
- D. Maintain a skeptical attitude throughout the entire engagement even if the evidence shows no signs of fraudulent activity.
Answer: D
NEW QUESTION # 168
Which of the following statements regarding monitoring employees for warning signs of fraud is MOST ACCURATE?
- A. Managers should be instructed to observe employees for any unusual lifestyle improvements, such as an unexplained increase in luxury purchases.
- B. Managers should only observe employees for signs of suspicious behavioral or lifestyle changes if they can do so without the employees' knowledge.
- C. An increase in employee wealth is always a sign of fraud that should be investigated.
- D. Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.
Answer: A
NEW QUESTION # 169
During a fraud risk assessment, the assessment team is seeking information on the ethical tone set by upper and middle managers. The team members determine that, for this task, they would like to get candid one-on- one feedback from employees away from their peers. Which of the following techniques would be most helpful for them to use in gathering this information?
- A. Surveys
- B. Focus groups
- C. Anonymous feedback mechanisms
- D. Interviews
Answer: D
Explanation:
* Purpose of the Task:
* The team seeks candid feedback on ethical tone, which requires a confidential and direct interaction method.
* Comparison of Techniques:
* A. Interviews: Effective for obtaining one-on-one feedback in a private setting.
* B. Focus groups: Group dynamics may inhibit candid responses due to peer pressure.
* C. Anonymous feedback mechanisms: These provide insights but lack the depth and follow-up opportunities of interviews.
* D. Surveys: While useful for broad input, surveys are less effective for detailed exploration of ethical tone.
* Conclusion:Interviews are the most helpful technique for gathering one-on-one candid feedback.
NEW QUESTION # 170
Which of the following factors increases an organization's inherent inclination toward committing crime according to Diane Vaughan's research?
- A. Management separates employee performance goals from company performance goals.
- B. Management rewards employees who challenge how the company functions.
- C. Management encourages employee loyalty through social functions.
- D. Management seeks diversity in attitudes and perspectives when hiring employees.
Answer: A
NEW QUESTION # 171
Which of the following is among the board of directors' primary responsibilities related to fraud risk management?
- A. Designing the fraud risk management program
- B. Implementing the fraud risk management program
- C. Overseeing the organization's fraud risk management activities
- D. Punishing fraud perpetrators discovered through fraud risk management activities
Answer: C
Explanation:
Board Responsibilities in Fraud Risk Management:
* The board plays a critical role in overseeing the organization's fraud risk management activities to ensure accountability and effective governance.
Why A is Correct:
* The board provides high-level oversight but does not typically involve itself in the design or implementation of the fraud risk management program.
Why Other Options are Incorrect:
* B and D: Design and implementation are management responsibilities.
* C: Punishment of fraud perpetrators is not directly within the board's purview.
NEW QUESTION # 172
......
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