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

1. Which of the following controls would MOST effectively reduce the risk of fictitious vendors being added to the accounting system?

A) Increasing employee bonuses
B) Encrypting vendor payment files
C) Annual inventory counts
D) Independent review of vendor setup requests with supporting documentation

2. Which of the following criminological theories asserts that the three elements that have the most influence on crime are the availability of suitable targets, absence of capable guardians, and presence of motivated offenders?

A) Rational choice theory
B) Differential association theory
C) Routine activities theory
D) Social control theory

3. Which of the following is NOT a factor that directors and management should consider when developing a corporate governance framework for an organization?

A) The legal and regulatory environment in which the organization operates
B) The ability of the framework to remain static during changes in the corporate landscape
C) The organization's cultural environment
D) The organization's ethical environment

4. Which of the following is TRUE regarding corporate governance?

A) An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization
B) Corporate governance's primary purpose is to ensure the accuracy of the organization's financial reports
C) Effective corporate governance practices are most necessary in an organization in which the owners are also the individuals responsible for setting the corporate strategy.
D) Fraud risk management is considered to be the foundation of effective corporate governance

5. Which of the following is an example of organizational crime?

A) An HR employee adding a ghost employee to the payroll and misappropriating the paychecks
B) An insurance claims agent conspiring with customers to file false insurance claims and share the proceeds
C) Management of several pharmaceutical companies engaging in a price fixing scheme
D) A sales manager using a corporate credit card for personal expenses

Solutions: