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

1. According to Silk and Vogel's research, business leaders rationalize legal violations by asserting that compliance with government regulations is too costly and cuts too heavily into company profits.

A) False
B) True

2. ABC. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that ABC is subject to?

A) ABC is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.
B) ABC is required to comply with G20/OECD Principles of Corporate Governance
C) ABC must comply with specific listing standards for the stock exchange(s) on which it is listed
D) ABC is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions

3. For Its compliance program to be effective, an organization must perform procedures to ensure management hires only ethical Individuals who exercise a substantial measure of discretion In acting on the organization's behalf

A) False
B) True

4. To reinforce an anti-fraud culture, it is BEST for an organization's management to:

A) Discipline any employees who publicly express their frustration regarding organizational policies.
B) Require senior leaders to follow the same ethics policies that are in place for all staff-level employees.
C) Use a checklist of initiatives to ensure that all the elements of a strong corporate culture are in place.
D) Discourage employees from questioning their immediate supervisor's actions or decisions if they have concerns.

5. The existence of many specialized departments within a company generally decreases the overall risk of fraud within the organization.

A) False
B) True

Solutions: