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

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

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

2. Mario is charged with implementing a fraud reporting program on behalf of his organization.
Which of the following is a best practice that Mario should follow to ensure that the program is successful?

A) Inform employees that they can make their report anonymously (where permitted by law).
B) Inform employees that the names of all individuals who report misconduct will be shared with the organization's management and law enforcement.
C) Inform employees that they will be held accountable for reporting any tips that cannot be verified.
D) Inform employees that they are required to report any information about suspected fraud only to their direct supervisor.

3. According to Steve Albrecht's research,______is the most common personal characteristic motivating fraudsters, and ________ is the most common organization-environment factor motivating fraudsters.

A) Revenge: too much trust in key employees
B) High personal debt; lack of separation of duties
C) Desire for recognition, lack of separation of duties
D) Living beyond their means, too much trust in key employees

4. A company implements mandatory job rotation within its accounting department. What fraud risk benefit does this provide?

A) It eliminates all payroll fraud
B) It helps expose irregularities when duties change hands
C) It discourages independent review
D) It increases opportunities for concealment

5. Terrel, a Certified Fraud Examiner (CFE), unknowingly violates the law one night. Which of the following statements about the ACFE Code of Professional Ethics is TRUE?

A) This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel knew the conduct was illegal.
B) This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel is arrested.
C) This conduct would be a violation of the ACFE Code of Professional Ethics.
D) This conduct would not be a violation of the ACFE Code of Professional Ethics under any circumstances.

Solutions: