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

1. The internal auditor's fraud-related responsibilities include which of the following?

A) Evaluating indicators of fraud and deciding whether any further action is necessary or whether an investigation should be recommended
B) Overseeing management's actions to manage fraud risks
C) Obtaining reasonable assurance that the organization's financial statements are free of material misstatements caused by fraud
D) Establishing and maintaining effective anti-fraud controls at a reasonable cost

2. According to International Organization for Standardization (ISO) 31000:2018, an organization's risk management program should be proportionate to the organization's specific operations and objectives.

A) False
B) True

3. Harry is an internal auditor with ABC Company. Harry's supervisor, the chief audit executive (CAE), is the fraud risk assessment sponsor and has tasked Harry with drafting an email communication regarding ABC's upcoming fraud risk assessment process. Which of the following is a best practice that Harry should implement?

A) Harry's communication should be sent to the entire staff from his own email address.
B) Harry should find a generic template to use as the primary communication to the entire staff.
C) Harry should keep the communication private and only share it with executive management.
D) Harry's communication should encourage employees to participate in the assessment process.

4. Which of the following Is NOT a way that an organization's fraud risk assessment should be Incorporated Into the audit process?

A) it should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.
B) It should be used to replace the auditor's own identification and assessment of fraud risks.
C) It should be used to design audit tests to evaluate whether the controls are operating effectively.
D) It should be used to assess whether there is a moderate-to-high risk of management overriding controls within the moderate-to-high fraud risk areas.

5. Which of the following Is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance?

A) Risk tolerance
B) Operating environment
C) Governance and culture
D) Independent monitoring

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