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

1. Which of the following is among the board of directors' primary responsibilities related to fraud risk management?

A) Punishing fraud perpetrators discovered through fraud risk management activities
B) Designing the fraud risk management program
C) Overseeing the organization's fraud risk management activities
D) Implementing the fraud risk management program

2. XYZ, Inc. Is a specialty retailer of high-end ergonomic office furniture. The company receives a very large order from ABC Company, a new customer in a different country that wants to pay on credit. Which of the following is MOST ACCURATE regarding the due diligence procedures XYZ should perform on ABC before proceeding with this transaction?

A) XYZ only needs to undertake due diligence procedures if ABC conducts business in countries with known corruption risks.
B) XYZ does not need to take any specific procedures to verify ABC's identity before accepting the transaction
C) XYZ should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination
D) XYZ should examine ABC's net worth as part of deciding whether to allow the purchase on credit.

3. Which of the following is BEST classified as a type of external fraud risk?

A) Reporting revenue in the wrong period
B) Embezzling incoming customer payments
C) Collusion between contractors
D) Adding ghost employees to payroll

4. In response to an employee's failure to meet performance expectations, a manager demotes the employee to a junior-level position. This is an example of what type of behavioral response?

A) Punishment
B) None of the above
C) Positive reinforcement
D) Negative reinforcement

5. According to ACFE research, which of the following is TRUE?

A) Men commit significantly more frauds than women do.
B) An unwillingness to share duties is the most reported red flag displayed by fraud perpetrators prior to the detection of their crime.
C) Most fraudsters have previous criminal convictions for fraud-related offenses.
D) Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.

Solutions: