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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

1. Which of the following statements is TRUE according to rational choice theory?

A) Crime can be deterred by decreasing the personal risk to potential perpetrators.
B) Crime originates from the application of excessive pressure and influence on the perpetrator by external sources.
C) Crime originates from a rational and conscious decision made by the perpetrator in order to receive an intended benefit.
D) Crime can be deterred by increasing the potential for financial gain for the perpetrator.

2. During an external audit of an organization's financial statements, Saskia, the external auditor, uncoverssignificant internal control deficiencies at the organization. She believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Saskia do regarding these findings?

A) Saskia should withdraw from the audit engagement immediately and issue a disclaimer on any prior work performed.
B) Saskia should suspend the current audit engagement and begin a new audit focused on the internal control deficiencies.
C) Saskia should communicate the deficiencies in writing to those charged with governance.
D) Saskia should provide a written communication about her findings to the relevant regulatory agencies.

3. According to Diane Vaughan. which of the following factors increases an organization's inherent inclination toward committing crime?

A) Management separates employee performance goals from company performance goals
B) Rewards are given to employees who challenge the status quo
C) All of the above
D) Management encourages employee loyalty through social functions

4. According to Silk and Vogel's research, which of the following is one of the ways that businesses rationalize illegal conduct?

A) Violations are caused by innocent errors in judgment rather than economic necessity.
B) Government regulation is unnecessary because the matters being regulated are unimportant.
C) Government regulations are justified because the additional costs of regulations and bureaucratic procedures increase government profits.
D) Corporate violations that involve large sums of money are often spread among so many organizations that each gains very little individually.

5. Which of the following is NOT one of the three general approaches used to control corporate crime?

A) Media blacklisting of the organization
B) Consumer action to force change
C) Strong intervention of the government
D) Voluntary changes in corporate attitudes and structure

Solutions: