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

1. According to the 2020 Report to the Nations.___________schemes ate the MOST COMMON form of occupational fraud, while_________schemes are the MOST COSTLY form of occupational fraud.

A) Asset misappropriation: financial statement fraud
B) Asset misappropriation; corruption
C) Financial statement fraud: corruption
D) Corruption, asset misappropriation

2. Gregory, an internal auditor, and Brandon, the company's purchasing manager, have had several heated disagreements over purchasing procedures and policies. Gregory has just been told that he will be the lead on the company's fraud risk assessment. During the fraud risk assessment.
Gregory should:

A) Have someone else perform the fraud risk assessment work related to the purchasing function
B) Automatically designate the purchasing function as a high-risk area.
C) Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.
D) Confront Brandon about the disagreements and discuss how they increase the organization's risk of fraud-

3. Which of the following is included in the G20/OECD Principles of Corporate Governance?

A) An examination of the importance of effectively designed and implemented internal control mechanisms within an organization
B) A requirement for corporations to establish a legal, regulatory, and institutional framework to support good governance practices
C) Guidance regarding appropriate board structures, responsibilities, and procedures
D) A call to support the equal treatment of all members of an organization's governing body

4. Helene has been working at WPX Corp. for nine years. She takes some of the company's products from the warehouse and sells them online. Helene tells herself that the company owes it to her for her "years of underpaid service." This situation BEST illustrates which component of the Fraud Triangle?

A) Perceived non-shareable financial need
B) Perceived opportunity
C) Integrity lapse
D) Rationalization

5. Which of the following is TRUE regarding government auditors' responsibilities to report evidence of potential fraud uncovered during an audit of a public-sector organization's financial statements?

A) All government auditors maintain the same requirements for reporting evidence of potential fraud uncovered during a public-sector financial statement audit.
B) The requirements for government auditors to report evidence of potential fraud depend on the jurisdiction and the specific audit mandate.
C) Government auditors' reporting requirements pertaining to fraud are substantially the same as those for external auditors in the private sector.
D) Government auditors are legally prohibited from reporting evidence of potential fraud to any parties outside the organization being audited.

Solutions: