Free Certified Fraud Examiner – Fraud Prevention and Deterrence Exam CFE-Fraud-Prevention-and-Deterrence Exam Practice Test

Which of the following Is NOT considered a conflict of Interest that Is prohibited under the ACFE Code of Professional Ethics?

• Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
• Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner's ownership interest is disclosed
• Undertaking engagements for both sides in a case of an alleged product substitution scheme
• Accepting an assignment to secretly infiltrate the fraud examiner's employing organization and transmit inside information to another party

According to modern criminological studies, which of the following is the determinant aspect of white-collar crime?

• Cultural ties
• Criminal history
• Organizational opportunity
• Social class

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?

• Perceived non-shareable financial need
• Rationalization
• Perceived opportunity
• Lack of personal Integrity

Who is ultimately responsible lor ensuring the effectiveness of the organization's anti-fraud program?

• Internal auditors
• The compliance function
• Management
• External auditors

According to the 2020 Report to the Nations, which of the following is the MOST COMMON method by which frauds are detected?

• Internal audit
• Confession
• Tips
• External audit

Fraud risks related to regulatory and legal misconduct include all of the following EXCEPT:

• Fraudulent customer payments
• Anti-competitive practices
• Insider trading
• Conflicts of interest

Which of the following is NOT a factor that directors and management should consider when developing a corporate governance framework for an organization?

• The legal and regulatory environment in which the organization operates
• The ability of the framework to remain static during changes in the corporate landscape
• The organization's ethical environment
• The organization's cultural environment

ABC. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that ABC is subject to?

• ABC must comply with specific listing standards for the stock exchange(s) on which it is listed
• ABC is required to comply with G20/OECD Principles of Corporate Governance
• ABC is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions
• ABC is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.

Blue. Inc. is a specialty retailer of customized shipping containers. The company receives a very large order from Green Company, a new customer from a country that is known to have high corruption risks. Which of the following is MOST ACCURATE regarding the due diligence procedures Blue should perform on Green before proceeding with this transaction?

• Blue should consider Green's expected purchasing pattern and method of payment in determining whether to accept the transaction.
• Blue only needs to undertake due diligence procedures if Green is requesting to pay on credit.
• Blue should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination.
• Blue does not need to undertake any specific due diligence procedures for this transaction.

In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.

• True
• False