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

1. Which of the following criminological theories states that individuals make a conscious decision to commit a crime and that crime can be deterred by reducing opportunities for criminal activity and increasing an individual's personal risk of being caught and punished?

A) Routine activities theory
B) Rational choice theory
C) Differential association theory
D) Social conflict theory

2. According to ACFE research, which of the following is TRUE regarding prosecutions of white- collar criminals?

A) Only a small percentage of perpetrators are punished when an organization handles a fraud case internally.
B) The primary reason that organizations decline to prosecute fraud cases is a lack of evidence.
C) The most common internal response to a substantiated fraud case is to terminate the employee.
D) Most fraud cases are only handled internally and are not referred to law enforcement for prosecution.

3. Which of the following is NOT a factor that directors and management should consider when developing a corporate governance framework for an organization?

A) The legal and regulatory environment in which the organization operates
B) The ability of the framework to remain static during changes in the corporate landscape
C) The organization's cultural environment
D) The organization's ethical environment

4. Which principle of corporate governance pertains to the disclosure of all material matters that the shareholders need to make timely and informed decisions regarding their investment in the company?

A) Transparency
B) Responsibility
C) Fairness
D) Accountability

5. Andrew, an internal auditor, is formalizing a process to identify and evaluate threats to his company's ability to achieve its objectives. Andrew's initiative BEST pertains to whichcomponent of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control-- Integrated Framework?

A) Risk assessment
B) Control environment
C) Monitoring
D) Control activities

Solutions: