ACFE CFE-Fraud-Prevention-and-Deterrence Exam Questions Free Practice Test

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Questions # 71:

The internal auditor's fraud-related responsibilities include which of the following?

Options:

Evaluating the organization's structures and process for fraud risk governance.

Issuing a report asserting that the organization's financial statements do not contain material misstatements caused by fraud.

Overseeing management's actions to manage fraud risks.

Reporting to regulators regarding the entity's vulnerability to fraud.

Questions # 72:

During an external audit of an organization's financial statements. Peter, the external auditor, uncovers significant internal control deficiencies at the audit client's organization. He believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Peter do with regard to these findings?

Options:

Peter should make a public announcement that he is withdrawing from the audit engagement.

Peter should provide a written communication about the findings to those charged with governance.

Peter should report the findings in writing directly to the appropriate regulatory agencies

Peter should discreetly work with senior management to correct the underlying internal control deficiencies.

Questions # 73:

Which of the following statements regarding monitoring employees for warning signs of fraud is MOST ACCURATE?

Options:

Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.

An increase in employee wealth is always a sign of fraud that should be investigated.

Managers should only observe employees for signs of suspicious behavioral or lifestyle changes if they can do so without the employees' knowledge.

Managers should be instructed to observe employees for any unusual lifestyle improvements, such as an unexplained increase in luxury purchases.

Questions # 74:

Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?

Options:

ISA 240 requires auditors to effectively raise awareness about the risk of fraud within the audited organization.

ISA 240 establishes standards regarding the auditor's responsibility to consider fraud in an audit of financial statements.

ISA 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization.

ISA 240 creates requirements for management regarding the establishment of a holistic fraud risk management program.

Questions # 75:

Which of the following is an example of organizational crime?

Options:

A sales manager using a corporate credit card for personal expenses

Management of several pharmaceutical companies engaging in a price fixing scheme

An insurance claims agent conspiring with customers to file false insurance claims and share the proceeds

An HR employee adding a ghost employee to the payroll and misappropriating the paychecks

Questions # 76:

During a fraud risk assessment, the assessment team is seeking information on the ethical tone set by upper and middle managers. The team members determine that, for this task, they would like to get candid one-on-one feedback from employees away from their peers. Which of the following techniques would be most helpful for them to use in gathering this information?

Options:

Interviews

Focus groups

Anonymous feedback mechanisms

Surveys

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