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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:

1. For its compliance program to be effective, an organization must promote the program through appropriate incentives for compliance.

A) False
B) True

2. Which of the following controls would MOST effectively reduce the risk of fictitious vendors being added to the accounting system?

A) Increasing employee bonuses
B) Annual inventory counts
C) Independent review of vendor setup requests with supporting documentation
D) Encrypting vendor payment files

3. An employee submits reimbursement requests for personal expenses disguised as business expenses. This scheme is BEST classified as:

A) Expense reimbursement fraud
B) Corruption
C) Billing fraud
D) Financial statement fraud

4. During a fraud risk assessment, a manager argues that fraud risks should only be evaluated based on historical fraud incidents. What is the BEST response?

A) Exclude hypothetical fraud scenarios
B) Focus exclusively on areas with prior losses
C) Agree because past fraud is the strongest predictor of future fraud
D) Evaluate both existing and potential fraud risks, including risks not previously observed

5. Which of the following is NOT one of the three general approaches used to control corporate crime?

A) Voluntary changes in corporate attitudes and structure
B) Strong intervention of the government
C) Media blacklisting of the organization
D) Consumer action to force change

Solutions: