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| Section | Weight | Objectives |
|---|---|---|
| Fraud Risk Management and Deterrence | 25% | - Monitoring and continuous improvement - Fraud prevention strategies and programs |
| Internal Controls and Fraud Prevention | 25% | - Internal control design and effectiveness - Fraud detection and prevention controls |
| Fraud Prevention Framework | 25% | - Fraud risk assessment processes - Fraud risk governance and oversight |
| Corporate Governance and Ethics | 25% | - Code of conduct and compliance programs - Ethical culture and tone at the top |
1. Grace, a Certified Fraud Examiner (CFE), has accepted her first fraud examination engagement.
Before beginning the investigation, she reviews the ACFE Code of Professional Ethics to ensure that her behavior will comply with the Code. Which of the following actions is explicitly prohibited by the ACFE Code of Professional Ethics?
A) Engaging in an activity that is legal within her jurisdiction
B) Providing conclusions based on discovered evidence
C) Participating in an activity with an undisclosed conflict of interest
D) Giving opinions regarding technical matters
2. According to the routine activities theory, all of the following are important elements that influence crime EXCEPT:
A) The availability of suitable targets
B) The presence of motivated offenders
C) The absence of capable guardians
D) The lack of accountability for misdeeds
3. According to criminologist Charles McCaghy, which of the following is the most compelling factor behind deviance by organizations?
A) Excessive regulatory requirements
B) Executive failures
C) Unethical corporate culture
D) Profit pressure
4. Which of the following Is NOT considered a conflict of Interest that Is prohibited under the ACFE Code of Professional Ethics?
A) Accepting an assignment to secretly infiltrate the fraud examiner's employing organization and transmit inside information to another party
B) Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner's ownership interest is disclosed
C) Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
D) Undertaking engagements for both sides in a case of an alleged product substitution scheme
5. According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO), internal control is defined as:
A) A process aimed at proactively identifying, assessing, and managing an organization's vulnerabilities to fraud by both internal and external sources.
B) The system that is designed and implemented to eliminate all uncertainty and risk while also ensuring the achievement of organizational goals.
C) The system enacted to ensure effective oversight of the board of directors, management, and all other parties responsible for an organization's direction, operations, and performance.
D) A process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: B |
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