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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. Jacques, an internal auditor, and Brenna, the company's travel and expense manager, have had several disagreements about employee expense limits and policies. Jacques has just been told that he will lead the company's fraud risk assessment. During the fraud risk assessment, Jacques should:

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

2. Po, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination. She did not find fraud, but in Po's opinion, there were several internal control deficiencies that, if not corrected, could facilitate the occurrence of fraud. Under the ACFE Code of Professional Ethics, which of the following is TRUE?

A) Po may include her opinion on the internal controls in her report to management because it is a technical matter.
B) Po may not include her opinion on the internal controls in her report to management because that is not what she was hired to assess.
C) Po may include her opinion on the internal controls in her report to management only if she amends her contract.
D) Po may include her opinion on the internal controls in her report to management only if management agrees to compensate her for the addition.

3. According to ACFE research, which of the following is the MOST COMMON method for detecting occupational fraud?

A) Document examination
B) Tips
C) Internal audit
D) Management review

4. Which of the following statements regarding monitoring employees for warning signs of fraud is MOST ACCURATE?

A) An increase in employee wealth is always a sign of fraud that should be investigated.
B) Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.
C) Managers should be instructed to observe employees for any unusual lifestyle improvements, such as an unexplained increase in luxury purchases.
D) Managers should only observe employees for signs of suspicious behavioral or lifestyle changes if they can do so without the employees' knowledge.

5. A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?

A) The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.
B) In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.
C) The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement
D) The objectives of the audit are likely narrower than those of a private-sector financial statement audit.

Solutions: