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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) It acts as a substitute for legal and regulatory requirements that apply to the profession.
B) It functions as a reference and benchmark for ethical guidance.
C) It offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.
D) It replaces the need for individuals to consult their own principles.

2. Baldwin, a Certified Fraud Examiner (CFE), has an ethical dilemma regarding his business contract with his professional partners. Which of the following scenarios demonstrates Baldwin consulting a source of guidance that would be considered the LOWEST level of reference to use for determining the most ethical action to take?

A) Baldwin reviewing the ACFE Code of Professional Ethics.
B) Baldwin reading the applicable contract law.
C) Baldwin contemplating philosophical principles related to ethics.
D) Baldwin asking for guidance from his family and friends.

3. Which of the following is one of the three general methods used to control corporate crime?

A) Lowered regulatory enforcement by the government
B) Demands from consumers to change
C) Loss of funding from financial institutions
D) Pressure from changes in the competitive environment

4. A company's anti-fraud controls are well designed, but management rarely enforces them and routinely ignores policy violations. Which statement is MOST accurate?

A) Fraud risk depends only on employee ethics
B) The controls automatically compensate for management behavior
C) Fraud risk increases because control enforcement is weak
D) Fraud risk remains low because the controls exist

5. Jody has been working at ABC Corp. for ten years. He steals funds from the company and tells himself that the company owes it to him for his "unrewarded hard work and loyalty" This situation BEST illustrates which leg of the Fraud Triangle?

A) Lack of personal Integrity
B) Perceived non-shareable financial need
C) Perceived opportunity
D) Rationalization

Solutions: