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

1. Ian is drafting a report containing the results of his company's fraud risk assessment process. To be MOST EFFECTIVE, Ian's report should:

A) Focus on the findings that will make the most impact on the company's fraud risk management efforts.
B) Reflect the assessment team's subjective perspective regarding the risks identified.
C) Contain a detailed, comprehensive list of every assessment finding.
D) Include a complete list of recommended actions for management to take to address all identified risks.

2. Which of the following is a TRUE statement regarding fraud risks?

A) Residual risks are risks that are present before the effect of internal controls.
B) Inherent risks are risks that remain after efforts are made to mitigate fraud risk.
C) The objective of anti-fraud controls is to completely eliminate the inherent fraud risk.
D) The objective of anti-fraud controls is to reduce the residual fraud risk to a level that is significantly lower than the inherent fraud risk.

3. In response to a risk identified during a fraud risk assessment, management decides to implement additional internal control measures. This response is known as:

A) Mitigating the risk
B) Transferring the risk
C) Assuming the risk
D) Avoiding the risk

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

A) Corporate governance's primary purpose is to ensure the accuracy of the organization's financial reports
B) An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization
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 TRUE regarding the G20/OECD Principles of Corporate Governance?

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

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