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Reference: https://www.acfe.com/details-exam-preparation.aspx
ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:
According to ACFE research, which of the following is TRUE?
- A. Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.
- B. Most fraudsters have previous criminal convictions for fraud-related offenses.
- C. An unwillingness to share duties is the most reported red flag displayed by fraud perpetrators prior to the detection of their crime.
- D. Men commit significantly more frauds than women do.
Correct Answer: C 🗳️
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(Which of the following statements regarding monitoring employees for warning signs of fraud is MOST ACCURATE?)
- A. Managers should observe employees for signs of suspicious behavioral or lifestyle changes only if they can do so without the employees' knowledge.
- B. Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.
- C. Managers should be instructed to observe employees for any unusual lifestyle improvements, such as an unexplained increase in luxury purchases.
- D. An increase in employee wealth is always a sign of fraud that should be investigated.
Correct Answer: C 🗳️
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Which of the following is NOT considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics?
- A. Accepting an assignment to evaluate the anti-fraud controls at an organization in which the fraud examiner is a shareholder, provided the fraud examiner ' s ownership interest is disclosed
- B. Accepting an assignment to secretly infiltrate the fraud examiner ' s employing organization and transmit inside information to another party
- C. Undertaking an engagement that decreases the fraud examiner ' s ability to perform their duties for their full-time employer
- D. Undertaking engagements for both sides in a case of alleged vendor overbilling
Correct Answer: A 🗳️
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During an external audit of an organization ' s financial statements. Elena, the external auditor, uncovers significant internal control deficiencies at the audit client ' s organization. She believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Elena do with regard to these findings?
- A. Elena should suspend the audit and begin a new audit focused on the internal controls
- B. Elena should work independently to correct the underlying internal control deficiency.
- C. Elena should provide a written communication about the findings to senior management.
- D. Elena should report the findings in writing to the appropriate law enforcement agencies.
Correct Answer: C 🗳️
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Green, a Certified Fraud Examiner (CFE). had an ethical dilemma regarding her business contract with her professional partners. Which of the following sources of guidance would be considered the lowest level of reference to help Green in determining the most ethical course of action?
- A. Contract law
- B. Guidance from her family and friends
- C. The ACFE Code of Professional Ethics
- D. Philosophical principles related to ethics
Correct Answer: B 🗳️
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