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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. Which statement BEST describes fraud deterrence?

A) Fraud deterrence guarantees fraud will never occur
B) Fraud deterrence focuses only on punishment after fraud occurs
C) Fraud deterrence seeks to reduce the likelihood of fraud through prevention and detection measures
D) Fraud deterrence eliminates the need for internal controls

2. Professional auditing standards require that auditors incorporate an "element of unpredictability" in the selection of auditing procedures to be performed.

A) True
B) False

3. Which of the following is a detective anti-fraud control?

A) Hiring policies and procedures
B) Fraud awareness training
C) Independent reconciliations
D) Separation of duties

4. ArtisanWare, Inc. is a retailer of high-end kitchen supplies. The company receives a very large order from EFG Company, a new customer in a different country that wants to pay on credit.
Which of the following is MOST ACCURATE regarding the due diligence procedures that ArtisanWare should perform on EFG before proceeding with this transaction?

A) ArtisanWare should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination.
B) ArtisanWare should examine EFG's net worth as part of deciding whether to allow the purchase on credit.
C) ArtisanWare does not need to take any specific procedures to verify EFG's identity before accepting the transaction.
D) ArtisanWare only needs to undertake due diligence procedures if EFG conducts business in countries with known corruption risks.

5. Adan, an internal auditor who works at BKY Co., is reviewing the auditing procedures for his company. He is specifically considering the ways BKY can proactively audit for fraud. Which of the following is TRUE regarding the use of proactive fraud auditing procedures at BKY?

A) Fraud assessment questioning techniques are most effectively used as part of the normal audit process.
B) Analytical review of BKY's financial statements is the best way to uncover small frauds that might be missed by other detection methods.
C) Auditors should avoid asking questions such as, "Has anyone ever asked you to do something unethical?" as part of their audits, as this can limit employees' willingness to communicate.
D) Fraud audit procedures should be designed to avoid an element of surprise.

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