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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization's reported revenue amount 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 should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold
B) The auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.
C) The auditors should reconsider the reliability of the audit evidence they have previously obtained.
D) The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.

2. Daniela, an independent Certified Fraud Examiner (CFE), was hired by Charles, executive director of a nonprofit organization, to investigate a straightforward embezzlement case.
Duringthe investigation, Daniela learns that Charles is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Daniela should:

A) Report Charles to law enforcement
B) Tell the nonprofit's board of trustees about Charles
C) Resign from the engagement.
D) Not disclose the information about Charles.

3. The Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance defines what as `the continual iterative process of obtaining information and sharing it throughout the entity'?

A) Information, communication, and reporting
B) Performance
C) Governance and culture
D) Strategy and objective-setting

4. Which of the following is TRUE regarding the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control--Integrated Framework (the Framework)?

A) Determining the effectiveness of an organization's internal control system involves assessing whether all of the identified components are in place and functioning effectively.
B) Determining the effectiveness of an organization's internal control system involves assessing whether the identified components meet minimum legal and compliance requirements.
C) Independent oversight is one of the primary components of internal control identified in the Framework.
D) The Framework identifies ten components of internal control that must all be in place for the internal control system to be effective.

5. Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.

A) True
B) False

Solutions: