Free ACFE CFE-Fraud-Prevention-and-Deterrence Exam Dumps Questions & Answers

The objective of anti-fraud controls is to:

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

Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?

• A.They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.
• B.They assert that a corporate governance framework should ensure the equitable treatment of all the organization's shareholders.
• C.They state that a corporate governance framework should require disclosure of all financial information to the organization's investors.
• D.They are intended to be applicable in developed economies but not in emerging markets.

Luis, the internal audit manager for Oak Corporation, is working to formally incorporate the company ' s fraud risk assessment into its audit process. Which of the following is NOT a way that Oak ' s audit team should use the fraud risk assessment process and results as part of their audits?

• A.To validate whether the organization is appropriately managing moderate-to-high fraud risks.
• B.To design audit tests to evaluate whether fraud risk controls are operating effectively.
• C.To confirm whether there is conclusive evidence that fraud is occurring within the company.
• D.To inform the development of audit programs for areas that have been identified as having a high risk of fraud.

Which of the following is one of the four recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

• A.Have a mandatory independent finance committee
• B.Develop a written charter for the audit committee
• C.Provide adequate resources and authority to the internal audit function
• D.Assign oversight of the hotline reporting program to company shareholders

Which of the following is the MOST EFFECTIVE way for management to respond to incidents of fraud within an organization?

• A.Punishing frauds only if they have a significant financial impact
• B.Keeping all known incidents of fraud private to protect the identities of parties involved
• C.Reporting known incidents of fraud to law enforcement
• D.Maintaining a policy that allows employees one warning before they are terminated for committing fraud