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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. XYZ, Inc. Is a specialty retailer of high-end ergonomic office furniture. The company receives a very large order from ABC 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 XYZ should perform on ABC before proceeding with this transaction?

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

2. Which of the following is TRUE regarding a background check policy for employees?

A) Management should perform a background check on any candidate who will have access to cash, checks, credit card numbers, or other items that are easily stolen.
B) If a background check was conducted on an employee at the time of hire, then there is no need for management to conduct additional background checks on that employee during their employment.
C) As part of the screening process, management should contact the personal and professional references provided by the job candidate only if they are unsure whether the candidate is being honest.
D) When verifying past employment, management should only ask previous employers to verify the candidate's previous position and dates of employment.

3. Ian is drafting a report containing the results of his company's fraud risk assessment process. To be MOST EFFECTIVE, Ian's report should:

A) Include a complete list of recommended actions for management to take to address all identified risks.
B) Focus on the findings that will make the most impact on the company's fraud risk management efforts.
C) Reflect the assessment team's subjective perspective regarding the risks identified.
D) Contain a detailed, comprehensive list of every assessment finding.

4. An executive pressures accounting staff to accelerate revenue recognition near year-end to meet earnings targets. This situation primarily reflects which element of the Fraud Triangle?

A) Collusion
B) Pressure
C) Rationalization
D) Opportunity

5. Which of the following statements is FALSE?

A) Educating employees about company hotlines and reporting programs increases their perception of detection
B) Most experts agree that it is harder to detect frauds than to prevent them
C) Controls are not effective in preventing theft and fraud If those at risk do not know of their presence
D) Conducting covert audits is among the most effective fraud prevention methods

Solutions: