CFE Fraud Prevention and Deterrence exam

For its compliance program to be effective, an organization must promote the program through appropriate incentives for compliance.A . True B. FalseView AnswerAnswer: A

Which of the following is TRUE regarding prosecutions of white-collar criminals?A . Only a small percentage of perpetrators are punished when an organization deals with a fraud case internally. B. Most fraud cases are only handled internally and are not referred to law enforcement for prosecution C. The primary reason...

Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but It allows exceptions for unknowing violations of the law.A . True B. FalseView AnswerAnswer: B

Employees should be kept unaware that management is watching for lifestyle and behavior changes In staff members that might indicate fraud.A . True B. FalseView AnswerAnswer: B

Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Smith to encourage his team members to keep their cash drawers in balance?A . Offer...

Which of the following criminological theories asserts that the three elements that have the most influence on crime are the availability of suitable targets, absence of capable guardians, and presence of motivated offenders?A . Rational choice theory B. Differential association theory C. Routine activities theory D. Social control theoryView AnswerAnswer:...

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines____________ as "a process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance."A . Corporate compliance B. Fraud risk management C. Risk...

Professional auditing standards suggest that auditors incorporate an "element of predictability" in the selection of auditing procedures to be performed so that they ensure the same areas are tested in the same manner during each audit.A . True B. FalseView AnswerAnswer: B

Which of the following is NOT a responsibility of the organization's board of directors?A . Serving as the intermediaries between shareholders and management B. Acting as guardians of the organization's resources and assets C. Directing employees to execute business activities D. Assessing the strategy and underlying purpose of management's decisions...

Which of the following is a detective anti-fraud control?A . Hiring policies and procedures B. Independent reconciliations C. Separation of duties D. Fraud awareness trainingView AnswerAnswer: B