CFE - Fraud Prevention Exam - Free ACFE Questions and Answers

Question #11 (Topic: Exam A)

Which of the following is TRUE regarding the internal audit function’s reporting responsibilities pertaining to fraud?

A. The internal audit function should wait until issues related to fraud arise before communicating with senior management or the board of directors about the topic B. The internal audit function should avoid communicating with the board of directors about fraud, as that is the responsibility of the external auditors C. The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence D. The internal audit function should periodically report about the organization’s fraud risks to senior management and the board of directors

Answer: D

Question #12 (Topic: Exam A)

Open-door management policies are a fraud prevention mechanism that addresses which leg of the Fraud Triangle?

A. Lack of integrity B. Opportunity C. Willingness D. Pressure

Answer: B

Question #13 (Topic: Exam A)

According to the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Internal Control-Integrated Framework (the Framework), there are five interrelated components of a company’s internal control. Which of the following is NOT among these five components?

A. Ethical culture B. Control activities C. Monitoring D. Risk assessment

Answer: A

Question #14 (Topic: Exam A)

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. Management encourages employee loyalty through social functions C. Management separates employee performance goals from company performance goals D. All of the above

Answer: C

Question #15 (Topic: Exam A)

Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?

A. 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 B. Management should tailor the detailed objectives of the fraud risk management program to the organization’s specific needs and goals C. Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented them 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: C

ACFE CFE - Fraud Prevention - Certified Fraud Examiner - Fraud Prevention Exam