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

1. Which of the following is NOT explicitly prohibited by the ACFE Code of Professional Ethics?

A) Drawing conclusions based upon evidence
B) Participating in an activity where there is an undisclosed conflict of interest
C) Engaging in behavior that is against the law
D) Acting in a way that could be deemed unethical by the industry

2. According to International Organization for Standardization (ISO) 31000:2018, an effective and efficient risk management program contains all of the following principles EXCEPT:

A) The program takes human and cultural factors into account.
B) The program facilitates continuous improvement.
C) The program is static and consistent, even during times of organizational change.
D) The program is customized and proportionate to the organization's operations and objectives.

3. Gregory, an internal auditor, and Brandon, the company's purchasing manager, have had several heated disagreements over purchasing procedures and policies. Gregory has just been told that he will be the lead on the company's fraud risk assessment. During the fraud risk assessment.
Gregory should:

A) Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.
B) Have someone else perform the fraud risk assessment work related to the purchasing function
C) Confront Brandon about the disagreements and discuss how they increase the organization's risk of fraud-
D) Automatically designate the purchasing function as a high-risk area.

4. A company implements a fraud hotline but does not allow anonymous reporting. What is the MOST likely consequence?

A) Increased reporting rates
B) Reduced employee concerns about retaliation
C) Fewer tips and reduced reporting effectiveness
D) Elimination of false allegations

5. Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?

A) They state that a corporate governance framework should require disclosure of all financial information to the organization's investors.
B) They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.
C) They are intended to be applicable in developed economies but not in emerging markets.
D) They assert that a corporate governance framework should ensure the equitable treatment of all the organization's shareholders.

Solutions: