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

1. Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To MOST EFFECTIVELY reinforce an anti-fraud culture, management should:

A) Use a checklist of initiatives to make sure all the elements of a strong tone at the lop are in place
B) Create an environment in which employees are dissuaded from challenging management's decisions
C) Visibly adhere to the same set of ethics policies that is required of all employees
D) All of the above

2. Devon, an employee at Tilly Corp., repeatedly demonstrates a negative attitude when working with other departments. To address this behavior, Devon's manager tells him that he is no longer allowed to lead cross-departmental projects. This is an example of what type of behavioral response?

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

3. According to ACFE research, which of the following is TRUE regarding prosecutions of white- collar criminals?

A) Only a small percentage of perpetrators are punished when an organization handles a fraud case internally.
B) The primary reason that organizations decline to prosecute fraud cases is a lack of evidence.
C) Most fraud cases are only handled internally and are not referred to law enforcement for prosecution.
D) The most common internal response to a substantiated fraud case is to terminate the employee.

4. Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance?

A) Compliance
B) Event avoidance
C) Review and revision
D) Risk tolerance

5. Which of the following statements regarding the objectives of a fraud risk management program is TRUE?

A) A fraud risk management program should include the formal procedures that management takes in response to a fraud, such as rebuilding stakeholders' confidence in the organization.
B) A fraud risk management program should only focus on addressing fraud after it occurs.
C) A fraud risk management program should incorporate policies and procedures designed to both prevent and detect fraud but should not address fraud responses.
D) A fraud risk management program should prioritize activities that proactively identify and assess fraud risks over activities that detect fraud while it is occurring.

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