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

1. Management at ABC Company wants to transfer one of the risks identified during the company's fraud risk assessment process. Which of the following actions would be MOST APPROPRIATE to support this response?

A) Implementing additional preventive and detective controls
B) Purchasing fidelity insurance to protect against the associated risk of loss
C) Discontinuing the underlying activity completely
D) Deciding not to implement any responsive measures

2. The Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance defines what as `the continual iterative process of obtaining information and sharing it throughout the entity'?

A) Governance and culture
B) Strategy and objective-setting
C) Performance
D) Information, communication, and reporting

3. According to professional auditing standards, auditors should do which of the following as part of addressing the assessed risks of material misstatement due to fraud in the financial statements?

A) Disregard the entity's selection and application of accounting policies concerning complex transactions
B) All of the above
C) Incorporate an element of predictability in the selection of auditing procedures to be performed
D) Consider the knowledge, skill, and ability levels of the individuals who are assigned significant audit responsibilities

4. According to ACFE research, which of the following is the MOST COMMON method for detecting occupational fraud?

A) Document examination
B) Internal audit
C) Tips
D) Management review

5. Warren wants to decrease the amount of cash register discrepancies among the cashiers at his small business. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Warren to encourage the cashiers to reduce their discrepancies and keep their cash drawers balanced?

A) Demote employees who continue to have reconciliation discrepancies.
B) Deduct an hour's worth of pay for anyone whose cash drawer is not perfectly reconciled each day.
C) Publicly praise employees every time their cash drawers are balanced.
D) Take away an hour of paid time off from an employee each time their cash drawer is not balanced.

Solutions: