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

1. Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

A) Recognition of the importance of the role of stakeholders in corporate governance
B) A request that governments have in place an appropriate framework to support good corporate governance practices
C) Support for establishing stronger protection for foreign shareholders than for domestic shareholders
D) Guidance regarding appropriate board structures, responsibilities, and procedures

2. Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?

A) Management must balance the investment in anti-fraud controls with the benefit of those controls and the amount of risk it is willing to accept.
B) Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program's effectiveness.
C) Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented tnem.
D) Management should tailor the detailed objectives of the fraud risk management program to the organization's specific needs and goals.

3. According to the differential reinforcement theory, behavior is strengthened when which of the following is applied?

A) Positive reinforcement
B) Negative stimuli
C) Loss of reward
D) Punishment

4. The internal auditor's fraud-related responsibilities include which of the following?

A) Obtaining reasonable assurance that the organization's financial statements are free of material misstatements caused by fraud
B) Overseeing management's actions to manage fraud risks
C) Evaluating indicators of fraud and deciding whether any further action is necessary or whether an investigation should be recommended
D) Establishing and maintaining effective anti-fraud controls at a reasonable cost

5. During an external audit of an organization's financial statements, Saskia, the external auditor, uncoverssignificant internal control deficiencies at the organization. She believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Saskia do regarding these findings?

A) Saskia should provide a written communication about her findings to the relevant regulatory agencies.
B) Saskia should withdraw from the audit engagement immediately and issue a disclaimer on any prior work performed.
C) Saskia should suspend the current audit engagement and begin a new audit focused on the internal control deficiencies.
D) Saskia should communicate the deficiencies in writing to those charged with governance.

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