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

1. During an external audit of an organization's financial statements. Peter, the external auditor, uncovers significant internal control deficiencies at the audit client's organization. He believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Peter do with regard to these findings?

A) Peter should discreetly work with senior management to correct the underlying internal control deficiencies.
B) Peter should report the findings in writing directly to the appropriate regulatory agencies
C) Peter should provide a written communication about the findings to those charged with governance.
D) Peter should make a public announcement that he is withdrawing from the audit engagement.

2. "Crimes of the Middle Classes" finds that all the following factors have contributed to the rising problem of economic crime EXCEPT:

A) Media sources sending the message that no one has to settle for second best.
B) Advancement of information technologies increasing the opportunity for misconduct.
C) The economy's decreased reliance on credit and a decline in personal debt.
D) The increase in funds available from government assistance programs.

3. While, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination She did not find fraud, but. In White's opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence of fraud Under the ACFE Code of Professional Ethics.
White may include her opinion on the controls in her report to management.

A) False
B) True

4. Reputational damage is an indirect cost of fraud that can be difficult for organizations to calculate.

A) False
B) True

5. The theory of differential association is used frequently lo explain white-collar criminality. Which of the following is NOT one of the assertions or principles of differential association?

A) Criminal behavior is learned from other people in a process of communication.
B) Criminal behavior is explained by an individual's general needs and values.
C) Criminal behavior is learned using the same mechanisms as other learning
D) Criminal behavior is acquired through participation with intimate personal groups.

Solutions: