ACFE CFE-Fraud-Prevention-and-Deterrence Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Exam Practice Test

The auditors should reconsider the reliability of the audit evidence they have previously obtained.

The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.

The auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.

The auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold

Including ethics-based metrics as a component of performance evaluations

Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks

Establishing loosely defined job descriptions that allow employees flexibility in their roles

Tying employee compensation to reasonable organizational performance goals

True

False

Asset misappropriation; corruption

Corruption, asset misappropriation

Financial statement fraud: corruption

Asset misappropriation: financial statement fraud

Positive reinforcement

Negative reinforcement

Punishment

None of the above

Cultural ties

Criminal history

Organizational opportunity

Social class

Rodrigo. a CFE. uncovered several material Internal control deficiencies unrelated to the Kickback scheme he was Investigating. In his final report to management. Rodrigo included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

Vivian, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she was in a hurry to complete the investigation, she overlooked key items of evidence and ended up failing to uncover a major fraud scheme.

Tom, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss. A year later, he received a court order to provide the client's file to the ordering court. Tom complied with the court order, even though he did not have the client's authorization to do so.

All of the above are violations.

Professional skepticism means beginning all assignments with the belief that something is amiss.

Professional skepticism involves maintaining a mindset that no fraud has occurred

Fraud examiners should form the engagement hypothesis without regard to the available preliminary information.

Fraud examiners should not relax their skeptical attitudes under any circumstances.

XYZ must comply with the various laws and regulations in the countries in which it operates

XYZ is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.

XYZ is required to comply with G20'OECD Principles of Corporate Governance.

XYZ is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions

Control activities

Ethical culture

Risk assessment

Monitoring

Corporate compliance

Fraud risk management

Risk assessment

Internal control

Hiring policies and procedures

Independent reconciliations

Separation of duties

Fraud awareness training

Fully eliminates the risk of fraud

Focuses more on detective controls than preventive controls

Focuses more on preventive controls than detective controls

Increases the perception that fraud will be detected

It replaces the need for individuals to consult their own conscience.

It facilitates practical enforcement and profession-wide Internal discipline.

It serves as a reference and benchmark for ethical guidance

It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles

The team members should have experience in gathering and eliciting information

The team members might include both internal and external sources.

The team size should be limited to a maximum of three individuals

The team should consist of individuals with diverse knowledge, skills, and perspectives

ABC must comply with specific listing standards for the stock exchange(s) on which it is listed

ABC is required to comply with G20/OECD Principles of Corporate Governance

ABC is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions

ABC is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.

True

False

Event avoidance

Risk tolerance

Compliance

Review and revision

The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement

The auditors should assess the need to adjust the nature, timing, and extent of remaining audit procedures based on this evidence.

The auditors can ignore the misstatement because the omitted amount is less than the quantitative materiality threshold and therefore immaterial to the audit.

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.

Tell the nonprofit's board of trustees about Charles

Report Charles to law enforcement

Not disclose the information about Charles.

Resign from the engagement.

The legal and regulatory environment in which the organization operates

The ability of the framework to remain static during changes in the corporate landscape

The organization's ethical environment

The organization's cultural environment