[Oct-2021] Pass CFE-Fraud-Prevention-and-Deterrence Exam in First Attempt UpdatedCFE-Fraud-Prevention-and-Deterrence DumpsActual Exam Question
Certified Fraud Examiner Dumps CFE-Fraud-Prevention-and-Deterrence Exam for Full Questions - Exam Study Guide
NEW QUESTION 52
The Institute of Internal Auditors' (IIA) International Standards for the Professional Practice of Internal Auditing states that
- A. The internal auditor must apply the skill and care of an expert whose primary responsibility is detecting fraud.
- B. The internal auditor must apply the skill and care of a reasonably prudent and competent internal auditor
- C. The internal auditor must apply the skill and care of an unbiased, infallible audit professional.
- D. The internal auditor must apply the skill and care of an expert whose primary responsibility is investigating fraud
Answer: C
NEW QUESTION 53
In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss This response is known as:
- A. Avoiding the risk
- B. Mitigating the risk
- C. Transferring the risk
- D. Assuming the risk
Answer: C
NEW QUESTION 54
Jenny is a highly respected employee at XYZ Corp Her husbands gambling addiction has caused them to have a significant amount of debt Jenny begins stealing money from the company to cover her husbands gambling losses. This situation best illustrates which leg of the Fraud Triangle?
- A. Rationalization
- B. Perceived opportunity
- C. Perceived non-shareable financial need
- D. Perceived acquiescence
Answer: C
NEW QUESTION 55
Which of the following is FALSE regarding a fraud risk assessment?
- A. The designation of an area as being high risk does not conclusively mean that fraud is occurring there
- B. The assessment team should consider how employees behave as part of its assessment
- C. The objective of the assessment is to provide an estimate of the organization s fraud losses
- D. The assessment should be used to improve employee fraud awareness
Answer: C
NEW QUESTION 56
Glenda. an internal auditor, and Bridgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies Glenda has just been told that she will be the lead on the company s fraud risk assessment. During the fraud risk assessment. Glenda should:
- A. Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department
- B. Have someone else perform the fraud risk assessment work related to the accounts receivable departments activities
- C. Confront Bridgette about the disagreements and discuss how they increase the departments risk of fraud
- D. Automatically designate the accounts receivable department as a high-risk area
Answer: C
NEW QUESTION 57
Maria conducted a fraud examination that led to a valid confession of guilt from Rita. In Maria's verbal report to her superiors, she stated that, in her opinion. "Rita is guilty of embezzlement." Maria has just violated the ACFE Code of Professional Ethics.
- A. False
- B. True
Answer: A
NEW QUESTION 58
Which of the following is FALSE regarding the discussion about the financial statements susceptibility to fraud that auditors are required to have under International Standard on Auditing (ISA) 240?
- A. The audit team should focus solely on how the company's assets could be misappropriated
- B. A The audit team should discuss how management could conceal fraud
- C. The audit team should consider whether the organizational culture might enable the rationalization of fraud
- D. The audit team should consider factors that provide the opportunity for fraud.
Answer: C
NEW QUESTION 59
The findings of the 2018 Report to the Nations include all of the following EXCEPT:
- A. The median losses caused by executives are higher than those caused by staff-level employees
- B. The majority of employees who commit occupational fraud are first-lime offenders.
- C. More occupational frauds are committed by women than by men.
- D. The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is living beyond their means
Answer: A
NEW QUESTION 60
Which of the following would most likely be a violation of the ACFE Code of Professional Ethics?
- A. Susan, a CFE was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file Susan complied with the court order, even though she did not have the client's authorization to do so
- B. Green, a CFE. uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.
- C. All of the above are violations
- D. Stephanie, a CFE. accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.
Answer: D
NEW QUESTION 61
In identifying the inherent fraud risks that could apply to the organization the fraud risk assessment team should discuss
- A. All of the above
- B. Risks to the organization's reputation
- C. The organization's incentive programs
- D. The possibility of management override of controls
Answer: A
NEW QUESTION 62
The existence of many specialized departments within a company generally decreases the overall risk of fraud within the organization
- A. True
- B. False
Answer: A
NEW QUESTION 63
As part of her audit of ABC Corp . Rachel, a CPA. is identifying the risks of material misstatement due to fraud As part of this task, she should evaluate any unexpected relationships that she identified in performing analytical procedures.
- A. True
- B. False
Answer: A
NEW QUESTION 64
The fact that most groups within groups a society have the same ideas of right and wrong greatly assists in the ability to determine the correct ethical decision in a given situation.
- A. False
- B. True
Answer: A
NEW QUESTION 65
According to The Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing, which of the following should the internal audit team evaluate in its assessment of the risk management process?
- A. The organization s risk exposures relating to the sale of assets
- B. The organization s fraud risk management initiatives
- C. The management team's assessment of the internal controls over financial reporting
- D. The materiality of the organization s financial statements
Answer: B
NEW QUESTION 66
Open-door management policies are a fraud prevention mechanism that addresses which leg of the Fraud Triangle?
- A. Pressure
- B. Willingness
- C. Lack of integrity
- D. Opportunity
Answer: D
NEW QUESTION 67
Jane, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination at XYZ Company. Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently.
XYZ's management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management's request
- A. False
- B. True
Answer: A
NEW QUESTION 68
Which of the following is FALSE regarding corporate governance'
- A. An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization
- B. Effective corporate governance practices are considered to be the foundation of fraud risk management.
- C. Effective corporate governance practices are most necessary in an organization in which the owners are not also the individuals responsible for setting and executing the business strategy
- D. Corporate governances primary purpose is to ensure the accuracy of the organizations financial reports
Answer: C
NEW QUESTION 69
Which of the following is FALSE regarding G20/OECD Principles of Corporate Governance (the Principles)?
- A. The Principles state that an entity's corporate governance framework should ensure the equitable treatment of all shareholders
- B. The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them
- C. The Principles are intended to be applicable in both developed economies and emerging markets
- D. The Principles state that an entity's corporate governance framework should encourage active cooperation between corporationfiand stakeholders in creating wealth.
Answer: C
NEW QUESTION 70
According to the differential reinforcement theory, behavior is weakened when positive rewards are gained or punishment is avoided
- A. True
- B. False
Answer: A
NEW QUESTION 71
Which of the following is NOT a purpose served by a professional organization s code of conduct?
- A. It facilitates practical enforcement and profession-wide internal discipline
- B. It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles
- C. It serves as a reference and benchmark for ethical guidance
- D. It provides clear answers to all ethical dilemmas the organization s members might face
Answer: C
NEW QUESTION 72
Which of the following is TRUE regarding the reporting of the fraud risk assessment results7
- A. All of the above
- B. The fraud risk assessment report should be delivered in a style most suited to the language of the business
- C. The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding
- D. A fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified
Answer: A
NEW QUESTION 73
Which of the following is among the audit committee s primary responsibilities related to fraud risk management?
- A. Designing the fraud risk management program
- B. Implementing the fraud risk management program
- C. Punishing fraud perpetrators discovered through fraud risk management activities
- D. Understanding how internal and external audit strategies address fraud risk
Answer: A
NEW QUESTION 74
The generation and use of relevant, quality information to support the functioning of internal control is a principle related to which component of the Committee of Sponsoring Organizations of the Treadway Commissions (COSO) Internal Control-Integrated Framework (the Framework)?
- A. Risk assessment
- B. Information and communication
- C. Monitoring
- D. Control environment
Answer: A
NEW QUESTION 75
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