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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. Which of the following is a best practice to ensure a successful fraud reporting program?

A) Employees are held accountable for reporting tips that are not able to be substantiated
B) Employees should be informed that, to the extent possible, their names will not be disclosed.
C) The company should communicate that fraud, waste, and abuse are more likely to occur in large organizations than small ones.
D) The company should require employees with information about potential fraud to report it directly and only to their immediate supervisor.

2. In the context of a fraud examination, integrity requires all of the following EXCEPT:

A) Avoidance of conflicts of interest
B) Trustworthiness
C) A well-developed sense of moral philosophy
D) Refusal to admit errors

3. During an external audit, the audit team identifies evidence that management has intentionally omitted some expenses from the company's financial statements in order to conceal an asset misappropriation scheme. 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 do not need to be concerned with this evidence, as asset misappropriation schemes are not considered relevant or material for external audit purposes.
B) The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement
C) The auditors should assess the need to adjust the nature, timing, and extent of remaining audit procedures based on this evidence.
D) The auditors can ignore the misstatement because the omitted amount is less than the quantitative materiality threshold and therefore immaterial to the audit.

4. Sycamore Inc. has a simple organizational structure with few specialized departments. The structure of Sycamore Inc. increases the likelihood that fraud will go undetected within the organization.

A) False
B) True

5. At the end of an engagement, a Certified Fraud Examiner (CFE) might provide a report to their client about the information uncovered during the investigation. Which of the following statements is TRUE regarding the potential privilege that applies to this report?

A) A fraud examiner's report is considered privileged information and is therefore protected from being legally demanded by outside parties.
B) A fraud examiner's report is privileged from disclosure by anyone other than the client.
C) A fraud examiner's report may be privileged from disclosure in certain circumstances, but it does not have an absolute legal privilege.
D) A fraud examiner's report is only privileged from disclosure if the author is also a professional legal advisor.

Solutions: