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

1. Which of the following statements is MOST ACCURATE regarding an effective system of anti- fraud controls?

A) It deters fraudsters by increasing the perception that fraud will be detected.
B) It prioritizes implementing detective controls over preventive controls.
C) It focuses more on preventive controls than detective controls.
D) It fully eliminates the risk of fraud by removing opportunities for misbehavior.

2. Which of the following factors increases an organization's inherent inclination toward committing crime according to Diane Vaughan's research?

A) Management rewards employees who challenge how the company functions.
B) Management encourages employee loyalty through social functions.
C) Management seeks diversity in attitudes and perspectives when hiring employees.
D) Management separates employee performance goals from company performance goals.

3. According to Steve Albrecht's research,______is the most common personal characteristic motivating fraudsters, and ________ is the most common organization-environment factor motivating fraudsters.

A) High personal debt; lack of separation of duties
B) Desire for recognition, lack of separation of duties
C) Living beyond their means, too much trust in key employees
D) Revenge: too much trust in key employees

4. XYZ, Inc. Is a specialty retailer of high-end ergonomic office furniture. The company receives a very large order from ABC Company, a new customer in a different country that wants to pay on credit. Which of the following is MOST ACCURATE regarding the due diligence procedures XYZ should perform on ABC before proceeding with this transaction?

A) XYZ should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination
B) XYZ should examine ABC's net worth as part of deciding whether to allow the purchase on credit.
C) XYZ does not need to take any specific procedures to verify ABC's identity before accepting the transaction
D) XYZ only needs to undertake due diligence procedures if ABC conducts business in countries with known corruption risks.

5. Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

A) A request that governments have in place an appropriate framework to support good corporate governance practices
B) Guidance regarding appropriate board structures, responsibilities, and procedures
C) Support for establishing stronger protection for foreign shareholders than for domestic shareholders
D) Recognition of the importance of the role of stakeholders in corporate governance

Solutions: