2024 Latest CFE-Fraud-Prevention-and-Deterrence DUMPS Q&As with Explanations Verified & Correct Answers
CFE-Fraud-Prevention-and-Deterrence dumps Exam Material with 140 Questions
NEW QUESTION # 36
Which of the following is FALSE regarding an organization's anti-fraud policy?
- A. In developing the anti-fraud policy, management should check with legal counsel regarding any legal considerations with respect to the policy.
- B. To avoid legal problems in discharging employees, the anti-fraud policy should not include any specific examples of frau and misconduct.
- C. One of the most important considerations in developing the anti-fraud policy is to ensure every allegation is handled in a uniform manner.
- D. A detailed anti-fraud policy can make it easier to investigate and punish employees who commit fraud and other dishonest acts.
Answer: C
NEW QUESTION # 37
Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To most effectively reinforce an anti-fraud culture, management should:
- A. implement two separate sets of ethics policies, one for management and one for employees
- B. Create an environment in which employees feel safe challenging management's decisions
- C. All of the above
- D. Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
Answer: B
NEW QUESTION # 38
The internal auditor s fraud-related responsibilities include which of the following?
- A. Overseeing managements actions to manage fraud risks
- B. Reporting to regulators regarding the entity's vulnerability to fraud
- C. Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program
- D. Attesting that the organization s financial statements are free of material misstatements caused by fraud
Answer: B
NEW QUESTION # 39
Which of the following is FALSE regarding the fraud risk assessment team?
- A. The team members might include both internal and external sources
- B. The team should consist of individuals with diverse knowledge, skills, and perspectives.
- C. The team members should have experience in gathering and eliciting information
- D. The team size should be limited to a maximum of three individuals.
Answer: D
NEW QUESTION # 40
The objective of anti-fraud controls is to:
- A. Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.
- B. Completely eliminate residual fraud risk
- C. Completely eliminate inherent fraud risk.
- D. Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk
Answer: D
NEW QUESTION # 41
The objectives of a fraud risk management program include
- A. All of the above
- B. Proactively identifying fraud risks
- C. Punishing fraud perpetrators
- D. Limiting the damage caused by fraud occurrences
Answer: A
NEW QUESTION # 42
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
Answer: B
NEW QUESTION # 43
According to Silk and Vogel's research, business leaders rationalize legal violations by asserting that compliance with government regulations is too costly and cuts too heavily into company profits.
- A. False
- B. True
Answer: B
NEW QUESTION # 44
Susannah Is conducting an external audit of a company In a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking her audit procedures, she discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Susannah's BEST response to these findings?
- A. Susannah should confront management with her audit findings and try to get a confession.
- B. Susannah should report her findings to the audit committee of the board of directors.
- C. Susannah should Immediately report her findings to the secunties regulators
- D. Susannah should not disclose her findings to any other parties due to client confidentiality.
Answer: B
NEW QUESTION # 45
Which of the following is a detective anti-fraud control?
- A. Fraud awareness training
- B. Independent reconciliations
- C. Separation of duties
- D. Hiring policies and procedures
Answer: C
NEW QUESTION # 46
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 report the findings in writing to the appropriate law enforcement agencies.
- B. Elena should suspend the audit and begin a new audit focused on the internal controls
- C. Elena should work independently to correct the underlying internal control deficiency.
- D. Elena should provide a written communication about the findings to senior management.
Answer: D
NEW QUESTION # 47
Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?
- A. Management should tailor the detailed objectives of the fraud risk management program to the organization's specific needs and goals.
- B. Management must balance the investment in anti-fraud controls with the benefit of those controls and the amount of risk it is willing to accept.
- C. Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented tnem.
- D. Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program's effectiveness.
Answer: D
NEW QUESTION # 48
The International Organization of Securities Commissions' (IOSCO) Principles for Auditor Oversight states that auditor oversight should involve a regular review process designed to ascertain whether audit firms adhere to quality control policies and procedures.
- A. False
- B. True
Answer: B
NEW QUESTION # 49
Which of the following statements regarding best practices that organizations can take to protect and support whistleblowers is MOST ACCURATE?
- A. Organizations should establish formal consequences that are to be imposed upon employees at the company who retaliate against a whistleblower.
- B. Organizations should emphasize that rules regarding whistleblower protections are only intended for lower level employees who might be more vulnerable to retaliation.
- C. Organizations should publicize their whistleblower procedures internally but should avoid communicating any procedural information to parties outside of the organization.
- D. Organizations should implement a clear whistleblower policy that lists out every type of misconduct that has ever been reported at the company.
Answer: A
NEW QUESTION # 50
Which of the following is TRUE regarding the communication of the fraud risk assessment process?
- A. All of the above
- B. The communication should be in the form of a personalized message from the assessment sponsor
- C. The communication should be visibly disseminated throughout the business
- D. The communication should actively encourage employees to participate in the assessment process
Answer: A
NEW QUESTION # 51
_____________Is the criminological theory that presents crime as a conscious decision that can be deterred by reducing opportunities for criminal activity and increasing the personal risk to an Individual of being caught and punished.
- A. Rational choice theory
- B. Justification of action theory
- C. Differential association theory
- D. Routine activities theory
Answer: C
NEW QUESTION # 52
According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:
- A. The increased constraints of the regulatory environment for businesses
- B. The continued pressures of a culture that rewards affluence and success
- C. The increased opportunity for wrongdoing as a result of advancing information technologies
- D. The economy's increased reliance on credit
Answer: A
NEW QUESTION # 53
Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?
- A. Including ethics-based metrics as a component of performance evaluations
- B. Establishing loosely defined job descriptions that allow employees flexibility in their roles
- C. Tying employee compensation to reasonable organizational performance goals
- D. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks
Answer: B
NEW QUESTION # 54
Based on research regarding the criminogenic nature of organizations, employees with strong personal values and ethics will always disobey a superior's direct order to engage in fraudulent behavior, despite an inherent desire to obey authority figures.
- A. Flase
- B. True
Answer: A
NEW QUESTION # 55
The findings of the 2018 Report to the Nations include all of the following EXCEPT:
- A. The median losses caused by executives are higher than those caused by staff-level employees
- B. The majority of employees who commit occupational fraud are first-lime offenders.
- C. More occupational frauds are committed by women than by men.
- D. The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is living beyond their means
Answer: A
NEW QUESTION # 56
According to Diane Vaughan. which of the following factors increases an organization's inherent inclination toward committing crime?
- A. Rewards are given to employees who challenge the status quo
- B. All of the above
- C. Management separates employee performance goals from company performance goals
- D. Management encourages employee loyalty through social functions
Answer: D
NEW QUESTION # 57
Which of the following principles of corporate governance pertains to the duty of the organization to act in the best interest of society?
- A. Transparency
- B. Accountability
- C. Fairness
- D. Responsibility
Answer: D
NEW QUESTION # 58
Sofia, a Certified Fraud Examiner (CFE). look an introductory class in computer forensics When a client thought there might be evidence of a crime on his hard drive. Sofia decided to conduct a forensic examination of the hard drive even though she had no experience or advanced training in this area Sofia's conduct would likely be a violation of the ACFE Code of Professional Ethics
- A. False
- B. True
Answer: B
NEW QUESTION # 59
Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?
- A. Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program s effectiveness
- B. Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented them.
- C. Management must consider the total amount of fraud risk it is willing to accept when determining fraud risk management objectives
- D. Management should express risk appetite in a manner that is appropriate for and unique to the organization s culture and operations.
Answer: C
NEW QUESTION # 60
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