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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. During an external audit, the audit team identifies evidence that management has intentionally omitted some expenses from the company's financial statements in order to conceal an asset misappropriation scheme. However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

A) The auditors should assess the need to adjust the nature, timing, and extent of remaining audit procedures based on this evidence.
B) The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement
C) The auditors can ignore the misstatement because the omitted amount is less than the quantitative materiality threshold and therefore immaterial to the audit.
D) The auditors do not need to be concerned with this evidence, as asset misappropriation schemes are not considered relevant or material for external audit purposes.

2. Which of the following is TRUE regarding an organization's ethics program?

A) In designing the ethics program, management should consider how stakeholders throughout the organization define success
B) To be most effective, access to the organization's ethics policy should be restricted to external parties such as vendors and customers
C) Having a written ethics policy is sufficient to communicate management's ethical philosophy and serve as a comprehensive ethics program
D) An ethics program should avoid addressing rewards for ethical behavior and sanctions for unethical behavior

3. While, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination She did not find fraud, but. In White's opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence of fraud Under the ACFE Code of Professional Ethics.
White may include her opinion on the controls in her report to management.

A) True
B) False

4. A professional organization's code of conduct serves which of the following purposes?

A) It replaces the need for individuals to consult their own principles.
B) It acts as a substitute for legal and regulatory requirements that apply to the profession.
C) It functions as a reference and benchmark for ethical guidance.
D) It offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.

5. Which of the following Is NOT Included In Ihe five fraud risk management principles described In Fraud Risk Management Guide, a joint publication by COSO and the ACFE?

A) Performing comprehensive fraud risk assessments to identify specific fraud schemes
B) Developing one-time evaluations for each fraud risk management principle
C) Communicating the expectations of those governing the fraud risk management program
D) Deploying preventive and detective fraud control activities to mitigate fraud risk

Solutions: