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  • Exam Name: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam
  • Last Update: 02-Jun-2023
  • Questions and Answers: 141
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CFE-Fraud-Prevention-and-Deterrence Questions and Answers

Question # 1

In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.

A.

True

B.

False

Question # 2

XYZ. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that XYZ is subject to?

A.

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

B.

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

C.

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

D.

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

Question # 3

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

Question # 4

According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:

A.

The continued pressures of a culture that rewards affluence and success

B.

The economy's increased reliance on credit

C.

The increased constraints of the regulatory environment for businesses

D.

The increased opportunity for wrongdoing as a result of advancing information technologies

Question # 5

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

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