CFE-FRAUD-PREVENTION-AND-DETERRENCE Online Practice Questions and Answers

Maria conducted a fraud examination that led to a valid confession of guilt from Rita. In Maria's verbal report to her superiors, she stated that, in her opinion. "Rita is guilty of embezzlement." Maria has just violated the ACFE Code of Professional Ethics.

A. True

B. False

According to G20/OECD Principles of Corporate Governance (the Principles):

A. Governments should have in place a corporate governance framework that promotes transparent and fair markets

B. Companies should disclose all financial information to investors, regardless of the cost burden of the disclosure

C. A corporate governance framework should focus on the rights of shareholders but does not need to include the rights of other organizational stakeholders

D. All of the above

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

The Public Interest Oversight Board (PIOB) is the global body responsible for establishing international corporate governance standards.

A. True

B. False

Which of the following statements is FALSE?

A. Controls do little good in preventing theft and fraud if those at risk do not know of their presence

B. Most experts agree that it is harder to detect frauds than to prevent them

C. Conducting covert audits is among the most effective fraud prevention methods

D. Educating employees about company hotlines and reporting programs increases their perception of detection

According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:

A. The continued pressures of a culture that rewards affluence and success

B. The economy's increased reliance on credit

C. The decrease in funds available from government assistance programs

D. The increased opportunity for wrongdoing as a result of advancing information technologies

According to the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control--Integrated Framework (the Framework), there are five interrelated components of a company's internal control. Which of the following is NOT among these five components?

A. Ethical culture

B. Risk assessment

C. Control activities

D. Monitoring

Which of the following would most likely be a violation of the ACFE Code of Professional Ethics?

A. 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

B. 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.

C. 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.

D. All of the above are violations

During a fraud risk assessment, (he assessment (earn 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. Anonymous feedback mechanisms

C. Interviews

D. Focus groups

A corporation can generally be held criminally responsible for criminal acts committed by its employees even if those in management had no knowledge of or participation in the underlying events.

A. True

B. False