Online Access Free CFE-Fraud-Prevention-and-Deterrence Exam Questions

Which of the following scenarios is the MOST ACCURATE representation of organizational crime?

• A.An agreement between all the local floral companies to unnecessarily raise prices.
• B.An accountant uses company funds to pay personal credit card charges.
• C.An inventory manager taking home the company ' s product to sell privately.
• D.A retail clerk colluding with a friend to commit a scheme involving fraudulent returns.

(Cedric is an internal auditor with XYZ Company. Cedric's supervisor, James, is the chief audit executive (CAE) and the fraud risk assessment sponsor. James has tasked Cedric with drafting an email communication regarding XYZ's upcoming fraud risk assessment process. Which of the following is a best practice that Cedric should implement?)

• A.Cedric's communication should be vague to avoid giving away specifics about the fraud risk assessment process.
• B.Cedric should keep the communication private and share it only with XYZ's board of directors.
• C.Cedric's communication should be sent from James's email address.
• D.Cedric should send a generic communication to the entire staff.

To reduce the probability of fraud in financial reports, the National Commission on Fraudulent Financial Reporting, also known as the Treadway Commission, made which of the following recommendations?

• A.Appoint a mandatory independent finance committee.
• B.Develop a written charter for the audit committee.
• C.Assign oversight of the hotline reporting program to shareholders.
• D.Provide adequate resources and authority to management.

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.Perceived opportunity
• B.Rationalization
• C.Lack of personal Integrity
• D.Perceived non-shareable financial need

According to ACFE research, which of the following is TRUE?

• A.Men and women commit similar amounts of occupational frauds.
• B.Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.
• C.Most employees who commit occupational fraud are first-time offenders.
• D.Complaints about family problems is the most reported behavioral red flag displayed by fraud perpetrators.