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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. Alicia, a government auditor, is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions. Which of the following is TRUE regarding Alicia's consideration of fraud during this engagement?

A) Alicia should focus on potential fraud and does not need to consider the possibility of abuse or other misconduct during the audit engagement.
B) In conducting the audit, Alicia's objectives are likely narrower than those of a private-sector financial statement audit.
C) If Alicia identifies fraud during the audit engagement, she must immediately withdraw from the engagement.
D) Alicia must comply with the requirements found in International Standard on Auditing 240 as they apply to both private- and public-sector audits.

2. A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?

A) The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement
B) In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.
C) The objectives of the audit are likely narrower than those of a private-sector financial statement audit.
D) The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.

3. Jody has been working at ABC Corp. for ten years. He steals funds from the company and tells himself that the company owes it to him for his "unrewarded hard work and loyalty" This situation BEST illustrates which leg of the Fraud Triangle?

A) Perceived non-shareable financial need
B) Lack of personal Integrity
C) Perceived opportunity
D) Rationalization

4. Gregory, an internal auditor, and Brandon, the company's purchasing manager, have had several heated disagreements over purchasing procedures and policies. Gregory has just been told that he will be the lead on the company's fraud risk assessment. During the fraud risk assessment.
Gregory should:

A) Automatically designate the purchasing function as a high-risk area.
B) Have someone else perform the fraud risk assessment work related to the purchasing function
C) Confront Brandon about the disagreements and discuss how they increase the organization's risk of fraud-
D) Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.

5. Joanna is leading the fraud risk assessment process for her organization. Which of the following considerations about the fraud risk assessment process is MOST ACCURATE and should be incorporated into Joanna's plans?

A) To ensure the independence of the team members, a consultant or another external party must conduct the fraud risk assessment.
B) The fraud risk assessment is most effective when management's influence on the process is limited.
C) If the individuals conducting the fraud risk assessment believe that fraud could not happen within the organization, then the assessment process should reflect that belief.
D) The fraud risk assessment can be conducted effectively by people inside or outside of the organization.

Solutions: