ACFE CFE-Fraud-Prevention-and-Deterrence Exam Practice Test Instant Access

Question 1

Which of the following statements Is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

AFraud examiners should not relax their skeptical attitudes under any circumstances.

BProfessional skepticism involves maintaining a mindset that no fraud has occurred

CFraud examiners should form the engagement hypothesis without regard to the nature of the assignment

DProfessional skepticism can be dispelled only by evidence

Answer : D

Question 2

According to the 2020 Report to the Nations, which of the following is the MOST COMMON method by which frauds are detected?

AInternal audit

BConfession

CTips

DExternal audit

Answer : C

Question 3

In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:

AThe organization's incentive programs

BThe possibility of management's override of controls

CRisks to the organization's reputation

DAll of the above

Answer : D

Question 4

The availability of suitable targets, absence of capable guardians, and presence of motivated offenders are the three most important elements that influence crime according to which of the following criminological theories?

AConditioning theory

BRoutine activities theory

CRational choice theory

DSocial control theory

Answer : D

Question 5

A report by a fraud examiner is privileged from disclosure by anyone other than the client.

ATrue

BFalse

Answer : B

Question 6

Which of the following Is FALSE regarding a fraud risk assessment?

AThe assessment team should consider how employees behave as part of Its assessment

BThe assessment should be used to improve employee fraud awareness.

CThe designation of an area as being high risk does not conclusively mean that fraud is occurring there.

DThe objective of the assessment is to provide an estimate of the organization's fraud losses.

Answer : D

Question 7

During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization's reported revenue amount However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

AThe auditors should reconsider the reliability of the audit evidence they have previously obtained.

BThe auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.

CThe auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.

DThe auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold

Answer : D

ACFE CFE-Fraud-Prevention-and-Deterrence Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Practice Test