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

Which of the following is an example of organizational crime?

• A.Management of several pharmaceutical companies engaging in a price fixing scheme
• B.An HR employee adding a ghost employee to the payroll and misappropriating the paychecks
• C.A sales manager using a corporate credit card for personal expenses
• D.An insurance claims agent conspiring with customers to file false insurance claims and share the proceeds

Benjamin, a Certified Fraud Examiner (CFE). was contacted regarding an engagement to investigate a complex money laundering case spanning numerous international jurisdictions and involving multiple cutting- edge technologies. Benjamin had previously attended a seminar on investigating money laundering schemes, but he had no other training or experience in such cases. However, he accepted the engagement and chose to conduct the work himself. Benjamin ' s conduct would likely be a violation of the ACFE Code of Professional Ethics.

• A.True
• B.False

Alicia, a government auditor, is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions. Which of the following is TRUE regarding Alicia's consideration of fraud during this engagement?

• A.In conducting the audit, Alicia's objectives are likely narrower than those of a private-sector financial statement audit.
• B.Alicia should focus on potential fraud and does not need to consider the possibility of abuse or other misconduct during the audit engagement.
• C.If Alicia identifies fraud during the audit engagement, she must immediately withdraw from the engagement.
• D.Alicia must comply with the requirements found in International Standard on Auditing 240 as they apply to both private- and public-sector audits.

Mary is charged with implementing a fraud reporting program on behalf of her organization. Which of the following is a best practice that Mary should follow to ensure that the program is successful?

• A.Mary should inform employees that they are required to report any information about potential fraud directly and only to their immediate supervisor.
• B.Mary should inform employees that the names of all individuals who report misconduct will be shared with the organization ' s governing body and law enforcement.
• C.Mary should inform employees that they will be held accountable for reporting tips that cannot be verified.
• D.Mary should inform employees of the precise methods for reporting potential fraud, such as completing an online form.

Charles, the chief executive officer (CEO) of the Baking & Things Corporation, hired Daniela, a Certified Fraud Examiner (CFE), to investigate an embezzlement case. During the investigation, Daniela learns that Charles is involved in an unrelated fraud. What action should Daniela take based on the ACFE Code of Professional Ethics?

• A.Daniela should contact the media to report what she found.
• B.Daniela should report Charles to law enforcement.
• C.Daniela should immediately resign from the engagement.
• D.Daniela should tell the company ' s board of directors about Charles.