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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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

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

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

A) Give shareholders oversight of hotline reporting programs
B) Have adequate compensation committee resources and authority
C) Have a mandatory independent audit committee
D) Develop a written charter for management

3. For Its compliance program to be effective, an organization must perform procedures to ensure management hires only ethical Individuals who exercise a substantial measure of discretion In acting on the organization's behalf

A) False
B) True

4. Patrick is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking his audit procedures, he discovers evidence that senior management has been fraudulently manipulating the financial statements.
Which of the following is Patrick's BEST response to these findings?

A) Patrick should report his findings to those charged with governance of the organization.
B) Patrick should immediately report his findings to local law enforcement authorities.
C) Patrick should not disclose his findings to any other parties due to client confidentiality
D) Patrick should confront management with his audit findings and try to get a confession.

5. 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 can ignore the misstatement because the omitted amount is less than the quantitative materiality threshold and therefore immaterial to the audit.
B) The auditors should assess the need to adjust the nature, timing, and extent of remaining audit procedures based on this evidence.
C) 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.
D) The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement

Solutions: