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

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

2. A company implements a fraud hotline but does not allow anonymous reporting. What is the MOST likely consequence?

A) Increased reporting rates
B) Elimination of false allegations
C) Reduced employee concerns about retaliation
D) Fewer tips and reduced reporting effectiveness

3. Which of the following mechanisms can help alleviate the pressure on employees to commit fraud?

A) Employee monitoring software
B) Discipline policies
C) Background check policies
D) Employee support programs

4. For Its compliance program to be effective, an organization must perform procedures to ensure management hires only ethical Individuals who exercise a substantial measure of discretion In acting on the organization's behalf

A) False
B) True

5. Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

A) Guidance regarding appropriate board structures, responsibilities, and procedures
B) Recognition of the importance of the role of stakeholders in corporate governance
C) Support for establishing stronger protection for foreign shareholders than for domestic shareholders
D) A request that governments have in place an appropriate framework to support good corporate governance practices

Solutions: