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

1. Which of the following is the MOST EFFECTIVE way for management to respond to incidents of fraud within an organization?

A) Maintaining a policy that allows employees one warning before they are terminated for committing fraud
B) Keeping all known incidents of fraud private to protect the identities of parties involved.
C) Punishing frauds only if they have a significant financial impact.
D) Emphasizing to all employees that the company maintains a policy of zero tolerance for fraud.

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

A) True
B) False

3. Management at ABC Company wants to transfer one of the risks identified during the company's fraud risk assessment process. Which of the following actions would be MOST APPROPRIATE to support this response?

A) Deciding not to implement any responsive measures
B) Purchasing fidelity insurance to protect against the associated risk of loss
C) Implementing additional preventive and detective controls
D) Discontinuing the underlying activity completely

4. Management at Alpha Company is developing a corporate compliance program. To ensure that the program will be effective, management should both incentivize employees for their compliance and discipline them for any violations.

A) True
B) False

5. A professional organization's code of conduct serves which of the following purposes?

A) A code facilitates practical enforcement and internal discipline throughout a profession.
B) A code acts as a substitute for legal and regulatory requirements that apply to the profession.
C) A code offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.
D) A code provides answers to all ethical dilemmas that the organization's members might encounter.

Solutions: