CFE-FRAUD-PREVENTION-AND-DETERRENCE Online Practice Questions and Answers

In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss This response is known as:

A. Mitigating the risk

B. Assuming the risk

C. Avoiding the risk

D. Transferring the risk

International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization

A. True

B. False

Which of the following theories suggests that, when considering the possibility of violating a law. people are likely to ask themselves. "What would my family and friends think if they find out?

A. Cognitive theory

B. Social control theory

C. Behavioral theory

D. Routine activities theory

Which of the following is FALSE regarding corporate governance'

A. Effective corporate governance practices are most necessary in an organization in which the owners are not also the individuals responsible for setting and executing the business strategy

B. Effective corporate governance practices are considered to be the foundation of fraud risk management.

C. Corporate governances primary purpose is to ensure the accuracy of the organizations financial reports

D. An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization

Julia is conducting a formal assessment of XYZ Corporation s ethical culture To which of the five components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control--Integrated Framework (the Framework) does her assessment pertain?

A. Control environment

B. Monitoring

C. Control activities

D. Information and communication

According to the differential reinforcement theory, behavior is weakened when positive rewards are gained or punishment is avoided

A. True

B. False

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. True

B. False

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. True

B. False

Gray, an independent Certified Fraud Examiner (CFE). was hired by Green president of the ABC Corporation, to investigate allegations that one oi ABC s employees is taking kickbacks. During the investigation. Gray learns that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:

A. Tell the company's board of directors about Green

B. Report Green to law enforcement.

C. Resign from the engagement

D. Not disclose the information about Green.

Which of the following is a detective anti-fraud control?

A. Separation of duties

B. Hiring policies and procedures

C. Independent reconciliations

D. Fraud awareness training