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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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

2. During a fraud risk assessment, a manager argues that fraud risks should only be evaluated based on historical fraud incidents. What is the BEST response?

A) Evaluate both existing and potential fraud risks, including risks not previously observed
B) Agree because past fraud is the strongest predictor of future fraud
C) Exclude hypothetical fraud scenarios
D) Focus exclusively on areas with prior losses

3. Which of the following statements is TRUE according to rational choice theory?

A) Crime originates from a rational and conscious decision made by the perpetrator in order to receive an intended benefit.
B) Crime can be deterred by decreasing the personal risk to potential perpetrators.
C) Crime can be deterred by increasing the personal benefit to potential perpetrators.
D) Crime originates from an instinctual response to external stimuli without any rational or conscious decision by the perpetrator.

4. A company implements a fraud hotline but does not allow anonymous reporting. What is the MOST likely consequence?

A) Increased reporting rates
B) Elimination of false allegations
C) Fewer tips and reduced reporting effectiveness
D) Reduced employee concerns about retaliation

5. Timothy, a new Certified Fraud Examiner (CFE), has been tasked with his first fraud examination engagement. To exercise appropriate professional skepticism as he conducts the engagement, Timothy should:

A) Maintain professional skepticism that can only be dispelled by evidence.
B) Form the engagement hypothesis without consideration for the nature of the assignment.
C) Maintain a skeptical attitude throughout the entire engagement even if the evidence shows no signs of fraudulent activity.
D) Begin the engagement with the belief that no fraud has occurred.

Solutions: