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

According to International Organization for Standardization (ISO) 31000:2018, an organization ' s risk management program should be proportionate to the organization ' s specific operations and objectives.

• A.False
• B.True

Which of the following options is a best practice for organizations to implement when creating an ethics program?

• A.The program should be designed without consideration of how board members or shareholders define success.
• B.The program should include both an ethics task force or committee and a designated ethics official.
• C.The program should incorporate an ethics policy that is accessible to internal parties but not external parties.
• D.The program should avoid specifying sanctions for unethical behavior so that misconduct can be dealt with on a case-by-case basis.

Which of the following statements BEST describes the difference between fraud and fraud risk?

• A.Fraud risk is the frequency at which an organization is victimized by fraud, whereas fraud refers to the opportunity for criminal acts to victimize the organization.
• B.Fraud risk is the overall amount of organizational or individual criminal activity, whereas fraud is the opportunity to deprive another of property or money through a specific act.
• C.Fraud is the organization's vulnerability from individuals capable of combining the elements of the Fraud Triangle, whereas fraud risk is the commission of any fraudulent act.
• D.Fraud is the deliberate act to deprive another of property or money, whereas fraud risk is the potential for an individual or group to commit the act.

Jenny is a highly respected employee at XYZ Corp. Her husband ' s gambling addiction has caused them to have a significant amount of debt. Jenny begins stealing money from the company to cover her husband ' s gambling losses. This situation best illustrates which leg of the Fraud Triangle?

• A.Perceived acquiescence
• B.Rationalization
• C.Perceived opportunity
• D.Perceived non-shareable financial need

Who is ultimately responsible lor ensuring the effectiveness of the organization ' s anti-fraud program?

• A.Management
• B.The compliance function
• C.External auditors
• D.Internal auditors