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

1. According to ACFE research, which of the following is TRUE regarding the three major categories of occupational fraud?

A) Identity theft is both the most common and costliest category of occupational fraud.
B) Asset misappropriation schemes are the most common category of occupational fraud.
C) Financial statement fraud schemes are the most common category of occupational fraud.
D) Corruption schemes are the costliest category of occupational fraud.

2. Which of the following statements about the fraud risk assessment process Is MOST ACCURATE?

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

3. During an external audit, the audit team identifies evidence that management has intentionally omitted some expenses from the company's financial statements in order to conceal an asset misappropriation scheme. However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

A) The auditors do not need to be concerned with this evidence, as asset misappropriation schemes are not considered relevant or material for external audit purposes.
B) The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement
C) The auditors can ignore the misstatement because the omitted amount is less than the quantitative materiality threshold and therefore immaterial to the audit.
D) The auditors should assess the need to adjust the nature, timing, and extent of remaining audit procedures based on this evidence.

4. Which of the following Is TRUE regarding the reporting of the fraud risk assessment results?

A) The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding
B) All of the above
C) The fraud risk assessment report should be delivered in a style most suited to the language of the business
D) A fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified

5. Ian is drafting a report containing the results of his company's fraud risk assessment process. To be MOST EFFECTIVE, Ian's report should:

A) Reflect the assessment team's subjective perspective regarding the risks identified.
B) Focus on the findings that will make the most impact on the company's fraud risk management efforts.
C) Include a complete list of recommended actions for management to take to address all identified risks.
D) Contain a detailed, comprehensive list of every assessment finding.

Solutions: