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ACFE Certified Fraud Examiner -Fraud Schemes and Financial Crimes Sample Questions:

1. For a code of business ethics and conduct to be MOST EFFECTIVE in preventing corruption schemes, it should:

A) Describe employees' obligations to the organization's shareholders.
B) Detail how employees should respond in all situations that might be considered ethically questionable.
C) Focus on management's expectations for staff rather than staff's expectations for management.
D) Raise awareness about key compliance and ethics risks for employees.

2. ______________ is required not only for theft, but for procedures to detect errors, avoid waste, and ensure a proper amount of inventory is maintained.

3. According to Hollinger and Clark, for policy development, management must pay attention to:

A) A clear understanding regarding theft behavior
B) Neither A nor B
C) Enforcement of sanctions
D) Both A & B

4. Which of the following statements regarding financial statement disclosures is TRUE?

A) Events occurring after the close of a reporting period that might significantly affect the financial statements do not need to be disclosed.
B) Management must disclose potential losses from ongoing litigation if the likelihood of the related liability is reasonably possible.
C) Related-party transactions only need to be disclosed if they might financially harm the company's stakeholders.
D) Changes in accounting principles do not need to be disclosed in the financial statements.

5. _____________ involves purposeful misreporting of financial information about the organization that is intended to mislead those who read it.

A) Fraudulent statement
B) Corruption
C) None of the above
D) Asset misappropriations

Solutions: