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

1. Jones, an accounting manager for a software company, wants to improve her team's adherence to the company's formal accounting policies and procedures and reduce the number of process exceptions they experience. According to behaviorist theories, which of the following options would be the most effective way for Jones to condition her staff to follow the company's formal accounting processes?

A) Offer a bonus to anyone who experiences no process exceptions for ninety days-
B) Publicly call out and criticize employees who deviate from the formal processes.
C) Demote employees who do not adhere to the expected processes.
D) Take away a day of paid time off for each process exception.

2. A company's anti-fraud controls are well designed, but management rarely enforces them and routinely ignores policy violations. Which statement is MOST accurate?

A) Fraud risk increases because control enforcement is weak
B) Fraud risk depends only on employee ethics
C) Fraud risk remains low because the controls exist
D) The controls automatically compensate for management behavior

3. Glenda. an internal auditor, and Brldgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies. Glenda has just been told that she will be the lead on the company's fraud risk assessment. During the fraud risk assessment. Glenda should:

A) Confront Bridgette about the disagreements and discuss how they increase the department's risk of fraud.
B) Have someone else perform the fraud risk assessment work related to the accounts receivable department's activities.
C) Automatically designate the accounts receivable department as a high-risk area.
D) Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department.

4. The objective of anti-fraud controls is to:

A) Completely eliminate residual fraud risk
B) Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.
C) Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk
D) Completely eliminate inherent fraud risk.

5. According to ACFE research, which of the following is TRUE?

A) Most employees who commit occupational fraud are first-time offenders.
B) Complaints about family problems is the most reported behavioral red flag displayed by fraud perpetrators.
C) Men and women commit similar amounts of occupational frauds.
D) Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.

Solutions: