CFE Fraud Prevention and Deterrence exam

Which of the following is an example of organizational crime?A . doctor conspiring with patients to file false health care insurance claimsB . A salesman offering bribes to secure a contractC . An accounting clerk forging company checks to herselfD . Management of several construction companies engaging in bid riggingView...

Which of the following statements about the fraud risk assessment process is MOST ACCURATE"?A . To ensure the independence of the team members a fraud risk assessment must be conducted by a consultant or other external party.B . The assessment team must be perceived as independent and objective by others...

The fact that most groups within groups a society have the same ideas of right and wrong greatly assists in the ability to determine the correct ethical decision in a given situation.A . TrueB . FalseView AnswerAnswer: B

Which of the following is NOT one of the three general approaches used to control corporate crime?A . Consumer action to force changeB . Voluntary changes in corporate attitudes and structureC . Media blacklisting of the organizationD . Strong intervention of the governmentView AnswerAnswer: B

In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss This response is known as:A . Mitigating the riskB . Assuming the riskC . Avoiding the riskD . Transferring the riskView AnswerAnswer:...

An effective system of internal controls:A . Decreases the perception that fraud will be detectedB . Focuses more on detective controls than preventive controlsC . Focuses more on preventive controls than detective controlsD . Does not completely eliminate the risk of fraudView AnswerAnswer: C

Which of the following is FALSE regarding G20/OECD Principles of Corporate Governance (the Principles)?A . The Principles state that an entity's corporate governance framework should ensure the equitable treatment of all shareholdersB . The Principles state that an entity's corporate governance framework should encourage active cooperation between corporationfiand stakeholders in...

Which of the following statements regarding white-collar defendants is TRUE?A . The lower the offenders' social status, the more likely they are to be imprisonedB . They are more likely to be fined than to face prison terms as punishmentC . They are less likely to insist on a trial...

Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treactway Commission's (COSO) Enterprise Risk Management―Integrating with Strategy and Performance?A . Event avoidanceB . ComplianceC . Risk toleranceD . Review and revisionView AnswerAnswer: C

Independent auditors play a critical role in enhancing the reliability of financial information by financial position and performance in compliance with accepted accounting standards.A . TrueB . FalseView AnswerAnswer: A