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

1. Professional auditing standards require that auditors incorporate an "element of unpredictability" in the selection of auditing procedures to be performed.

A) True
B) False

2. Blue. Inc. is a specialty retailer of customized shipping containers. The company receives a very large order from Green Company, a new customer from a country that is known to have high corruption risks. Which of the following is MOST ACCURATE regarding the due diligence procedures Blue should perform on Green before proceeding with this transaction?

A) Blue should consider Green's expected purchasing pattern and method of payment in determining whether to accept the transaction.
B) Blue does not need to undertake any specific due diligence procedures for this transaction.
C) Blue should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination.
D) Blue only needs to undertake due diligence procedures if Green is requesting to pay on credit.

3. In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:

A) All of the above
B) The organization's incentive programs
C) The possibility of management's override of controls
D) Risks to the organization's reputation

4. In the context of a fraud examination, integrity requires which of the following?

A) Prioritization of desires for personal gain over the interests of clients
B) The ability to conceal errors to preserve the reliability of the work performed
C) A well-developed sense of moral philosophy and the ability to distinguish right from wrong
D) Avoidance of differences of opinion on all material matters

5. Which of the following is included in the G20/OECD Principles of Corporate Governance?

A) A call to support the equal treatment of all members of an organization's governing body
B) Guidance regarding appropriate board structures, responsibilities, and procedures
C) An examination of the importance of effectively designed and implemented internal control mechanisms within an organization
D) A requirement for corporations to establish a legal, regulatory, and institutional framework to support good governance practices

Solutions: