ACFE CFE-Fraud-Prevention : Certified Fraud Examiner - Fraud Prevention and Deterrence Exam

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

1. A fraud risk assessment identifies a scheme that has a low likelihood of occurrence but would cause catastrophic financial and reputational damage. How should the organization treat this risk?

A) Remove it from the assessment
B) Evaluate both likelihood and impact when determining mitigation priorities
C) Ignore it because likelihood is low
D) Focus only on frequent fraud risks

2. 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 seeks diversity in attitudes and perspectives when hiring employees.
C) Management encourages employee loyalty through social functions.
D) Management rewards employees who challenge how the company functions.

3. Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.

A) False
B) True

4. Jody has been working at ABC Corp. for ten years. He steals funds from the company and tells himself that the company owes it to him for his "unrewarded hard work and loyalty" This situation BEST illustrates which leg of the Fraud Triangle?

A) Perceived opportunity
B) Rationalization
C) Lack of personal Integrity
D) Perceived non-shareable financial need

5. Employee anti-fraud education should:

A) Include examples of prior employee misconduct and how those situations were handled.
B) Be restricted to formal educational mechanisms to reinforce the importance of the message.
C) Include descriptions of the procedures that management uses to detect fraud.
D) Be presented by organizational executives or anti-fraud professionals only.

Solutions: