2022 Easy Success ACFE CFE-Fraud-Prevention-and-Deterrence Exam in First Try
Best CFE-Fraud-Prevention-and-Deterrence Exam Dumps for the Preparation of Latest Exam Questions
NEW QUESTION 44
Jane, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination at XYZ Company. Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently.
XYZ's management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management's request
- A. False
- B. True
Answer: A
NEW QUESTION 45
For its compliance program lo 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
Answer: B
NEW QUESTION 46
According to Diane Vaughan, which of the following factors increases an organization's inherent inclination toward committing crime?
- A. Rewards are given to employees who challenge the status quo
- B. All of the above
- C. Management seeks out diversity in attitudes and perspectives when hiring employees
- D. Management links employee performance goals with company performance goals
Answer: D
NEW QUESTION 47
Which of the following is FALSE regarding a fraud risk assessment?
- A. The objective of the assessment is to provide an estimate of the organization s fraud losses
- B. The assessment team should consider how employees behave as part of its assessment
- C. The assessment should be used to improve employee fraud awareness
- D. The designation of an area as being high risk does not conclusively mean that fraud is occurring there
Answer: A
NEW QUESTION 48
A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?
- A. The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement
- B. The objectives of the audit are likely narrower than those of a private-sector financial statement audit.
- C. The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.
- D. In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.
Answer: D
NEW QUESTION 49
To address an employee's consistent failure to meet deadlines, a manager removes the employee's ability to work from home This is an example of what type of behavioral response?
- A. Punishment
- B. None of the above
- C. Positive reinforcement
- D. Negative reinforcement
Answer: A
NEW QUESTION 50
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
Answer: A
NEW QUESTION 51
Which of the following is an example of organizational crime?
- A. Management of several pharmaceutical companies engaging in a price fixing scheme
- B. An insurance claims agent conspiring with customers to file false insurance claims and share the proceeds
- C. A sales manager using a corporate credit card for personal expenses
- D. An HR employee adding a ghost employee to the payroll and misappropriating the paychecks
Answer: A
NEW QUESTION 52
According to Diane Vaughan. which of the following factors increases an organization's inherent inclination toward committing crime?
- A. Rewards are given to employees who challenge the status quo
- B. All of the above
- C. Management separates employee performance goals from company performance goals
- D. Management encourages employee loyalty through social functions
Answer: D
NEW QUESTION 53
During a fraud risk assessment, the assessment team determines that it would like to observe the interactions among several employees as they collectively discuss the organization's current fraud awareness training. Which of the following techniques would be MOST HELPFUL for the team to use in gathering this information?
- A. Interviews
- B. Surveys
- C. Anonymous feedback mechanisms
- D. Focus groups
Answer: D
NEW QUESTION 54
Which of the following is NOT considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics? )
- A. Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner's ownership interest is disclosed
- B. Undertaking engagements for both sides in a case of an alleged product substitution scheme
- C. Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
- D. Accepting an assignment to secretly infiltrate the fraud examiner s employing organization and transmit inside information to another party
Answer: B
NEW QUESTION 55
In the area of criminological theory, deterrence is the theory that tries to prevenl crime by using the threat of criminal sanctions.
- A. False
- B. True
Answer: B
NEW QUESTION 56
Which of the following is NOT a way that an organization's fraud risk assessment should be incorporated into the audit process''
- A. It should be used to design audit tests to evaluate whether the controls are operating effectively
- B. It should be used to assess whether there is a moderate-to-high risk of management override of internal controls within the moderate-to-high fraud risk areas
- C. It should be used to replace the auditor's own identification and assessment of fraud risks.
- D. It should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.
Answer: C
NEW QUESTION 57
As part of her audit of ABC Corp . Rachel, a CPA. is identifying the risks of material misstatement due to fraud As part of this task, she should evaluate any unexpected relationships that she identified in performing analytical procedures.
- A. False
- B. True
Answer: B
NEW QUESTION 58
Consistently punishing perpetrators can be an effective fraud prevention mechanism.
- A. False
- B. True
Answer: A
NEW QUESTION 59
A report by a fraud examiner is privileged from disclosure by anyone other than the client
- A. False
- B. True
Answer: B
NEW QUESTION 60
In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:
- A. Risks to the organization's reputation
- B. All of the above
- C. The organization's incentive programs
- D. The possibility of management's override of controls
Answer: B
NEW QUESTION 61
Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?
- A. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks
- B. Including ethics-based metrics as a component of performance evaluations
- C. Establishing loosely defined job descriptions that allow employees flexibility in their roles
- D. Tying employee compensation to reasonable organizational performance goals
Answer: C
NEW QUESTION 62
In the context of a fraud examination, integrity requires all of the following EXCEPT:
- A. Refusal to admit errors
- B. Trustworthiness
- C. A well-developed sense of moral philosophy
- D. Avoidance of conflicts of interest
Answer: A
NEW QUESTION 63
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