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

1. Which of the following is a detective anti-fraud control?

A) Hiring policies and procedures
B) Independent reconciliations
C) Fraud awareness training
D) Separation of duties

2. Which of the following is TRUE regarding prosecutions of white-collar criminals?

A) Most fraud cases are only handled internally and are not referred to law enforcement for prosecution
B) Only a small percentage of perpetrators are punished when an organization deals with a fraud case internally.
C) The primary reason organizations decline to prosecute fraud cases is a belief that their internal discipline methods are sufficient
D) When fraud cases are handled internally, an employee is more likely to be suspended or put on probation than to be terminated for their crime.

3. Which of the following is one of the four recommendations made by the National Commission on Fraudulent Financial Reporting the Treadway Commission to reduce the probability of fraud in financial reports?

A) Have adequate audit committee resources and authority.
B) Develop a written charter for management.
C) Have a mandatory independent compensation committee.
D) Give shareholders oversight of internal controls.

4. Which of the following principles of corporate governance pertains to the duty of the organization to act in the best interest of society?

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

5. Which of the following is FALSE regarding an organization's anti-fraud policy?

A) In developing the anti-fraud policy, management should check with legal counsel regarding any legal considerations with respect to the policy.
B) To avoid legal problems in discharging employees, the anti-fraud policy should not include any specific examples of frau and misconduct.
C) One of the most important considerations in developing the anti-fraud policy is to ensure every allegation is handled in a uniform manner.
D) A detailed anti-fraud policy can make it easier to investigate and punish employees who commit fraud and other dishonest acts.

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