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

1. Which of the following statements is MOST ACCURATE regarding best practices that organizations can take to protect and support whistleblowers?

A) Organizations should implement a clear whistleblower policy that lists every type of misconduct that has ever been reported at the company.
B) Organizations should include in their whistleblower policies the specific penalties that people might encounter for refusing to report known misconduct.
C) Organizations should publicize their whistleblower policies and procedures to individuals both inside and outside of the organization.
D) Organizations should emphasize that rules regarding whistleblower protections are only intended for lower-level employees who might be more vulnerable to retaliation.

2. According to International Organization for Standardization (ISO) 31000:2018, an effective and efficient risk management program contains all of the following principles EXCEPT:

A) The program is based upon the best available information.
B) The program is structured and comprehensive.
C) The program is customized and proportionate to the organization's operations and objectives.
D) The program is integrated into only high-risk organizational activities.

3. Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?

A) They are intended to be applicable in developed economies but not in emerging markets.
B) They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.
C) They assert that a corporate governance framework should ensure the equitable treatment of all the organization's shareholders.
D) They state that a corporate governance framework should require disclosure of all financial information to the organization's investors.

4. Charles, the chief executive officer (CEO) of the Baking & Things Corporation, hired Daniela, a Certified Fraud Examiner (CFE), to investigate an embezzlement case. During the investigation, Daniela learns that Charles is involved in an unrelated fraud. What action should Daniela take based on the ACFE Code of Professional Ethics?

A) Daniela should immediately resign from the engagement.
B) Daniela should report Charles to law enforcement.
C) Daniela should tell the company's board of directors about Charles.
D) Daniela should contact the media to report what she found.

5. Which of the following is NOT explicitly prohibited by the ACFE Code of Professional Ethics?

A) Engaging in behavior that is against the law
B) Drawing conclusions based upon evidence
C) Participating in an activity where there is an undisclosed conflict of interest
D) Acting in a way that could be deemed unethical by the industry

Solutions: