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  • Exam Name: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam
  • Last Update: 27-May-2024
  • Questions and Answers: 141
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CFE-Fraud-Prevention-and-Deterrence Questions and Answers

Question # 1

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

A.

True

B.

False

Question # 2

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.

Assuming the risk

B.

Mitigating the risk

C.

Avoiding the risk

D.

Transferring the risk

Question # 3

Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but It allows exceptions for unknowing violations of the law.

A.

True

B.

False

Question # 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 only needs to undertake due diligence procedures if ABC conducts business in countries with known corruption risks.

B.

XYZ does not need to take any specific procedures to verify ABC's identity before accepting the transaction

C.

XYZ should examine ABC's net worth as part of deciding whether to allow the purchase on credit.

D.

XYZ should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination

Question # 5

The objectives of a fraud risk management program include:

A.

Proactively identifying fraud risks

B.

Limiting the damage caused by fraud occurrences

C.

Punishing fraud perpetrators

D.

All of the above

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