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

1. Criminologist Charles McCaghy has stated that regulatory pressure is the single most compelling factor behind deviance by organizations.

A) True
B) False

2. Glenda. an internal auditor, and Brldgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies. Glenda has just been told that she will be the lead on the company's fraud risk assessment. During the fraud risk assessment. Glenda should:

A) Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department.
B) Automatically designate the accounts receivable department as a high-risk area.
C) Have someone else perform the fraud risk assessment work related to the accounts receivable department's activities.
D) Confront Bridgette about the disagreements and discuss how they increase the department's risk of fraud.

3. In the area of criminological theory, deterrence is the theory that tries to prevenl crime by using the threat of criminal sanctions.

A) True
B) False

4. XYZ, Inc. Is a specialty retailer of high-end ergonomic office furniture. The company receives a very large order from ABC Company, a new customer in a different country that wants to pay on credit. Which of the following is MOST ACCURATE regarding the due diligence procedures XYZ should perform on ABC before proceeding with this transaction?

A) XYZ should examine ABC's net worth as part of deciding whether to allow the purchase on credit.
B) XYZ does not need to take any specific procedures to verify ABC's identity before accepting the transaction
C) XYZ should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination
D) XYZ only needs to undertake due diligence procedures if ABC conducts business in countries with known corruption risks.

5. A professional organization's code of conduct serves which of the following purposes?

A) It offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.
B) It replaces the need for individuals to consult their own principles.
C) It acts as a substitute for legal and regulatory requirements that apply to the profession.
D) It functions as a reference and benchmark for ethical guidance.

Solutions: