ACFE CFE-Fraud-Prevention-and-Deterrence Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Exam Practice Test Questions

• Question 1

  According to modern criminological studies, which of the following is the determinant aspect of white-collar crime?

  • Cultural ties
  • Criminal history
  • Organizational opportunity
  • Social class

  Show Answer Answer: C Next

• Question 2

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

  • A mandatory independent compensation committee
  • Shareholder oversight of internal controls
  • A written charter for management
  • Adequate audit committee resources and authority

  Show Answer Answer: D Next

• Question 3

  Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.

  • True
  • False

  Show Answer Answer: A Next

• Question 4

  Which of the following is NOT explicitly prohibited by the ACFE Code of Professional Ethics?

  • Acting in a way that could be deemed unethical by the industry
  • Drawing conclusions based upon evidence
  • Participating in an activity where there is an undisclosed conflict of interest
  • Engaging in behavior that is against the law

  Show Answer Answer: B Next

• Question 5

  Which of the following is TRUE regarding corporate governance?

  • Fraud risk management is considered to be the foundation of effective corporate governance
  • Corporate governance's primary purpose is to ensure the accuracy of the organization's financial reports
  • Effective corporate governance practices are most necessary in an organization in which the owners are also the individuals responsible for setting the corporate strategy.
  • An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization

  Show Answer Answer: A Next