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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q107-Q112):
NEW QUESTION # 107
Daniela, an independent Certified Fraud Examiner (CFE), was hired by Charles, executive director of a nonprofit organization, to investigate a straightforward embezzlement case. During the investigation, Daniela learns that Charles is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Daniela should:
- A. Resign from the engagement.
- B. Not disclose the information about Charles.
- C. Tell the nonprofit's board of trustees about Charles
- D. Report Charles to law enforcement
Answer: C
NEW QUESTION # 108
Patrick is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking his audit procedures, he discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Patrick's BEST response to these findings?
- A. Patrick should immediately report his findings to local law enforcement authorities.
- B. Patrick should not disclose his findings to any other parties due to client confidentiality
- C. Patrick should report his findings to those charged with governance of the organization.
- D. Patrick should confront management with his audit findings and try to get a confession.
Answer: C
NEW QUESTION # 109
According to the 2020 Report to the Nations, which of the following is the MOST COMMON method by which frauds are detected?
- A. Tips
- B. Confession
- C. External audit
- D. Internal audit
Answer: A
NEW QUESTION # 110
Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the most effective way for Smith to encourage his team members to keep their cash drawers in balance?
- A. Demote employees who continue to have reconciliation discrepancies
- B. Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.
- C. Publicly call out and criticize employees whose cash drawers are over or short
- D. Take away an hour of paid time off for each time the drawer is over or short.
Answer: B
NEW QUESTION # 111
The Institute of Internal Auditors' (IIA) International Standards for the Professional Practice of Internal Auditing states that
- A. The internal auditor must apply the skill and care of an expert whose primary responsibility is investigating fraud
- B. The internal auditor must apply the skill and care of a reasonably prudent and competent internal auditor
- C. The internal auditor must apply the skill and care of an unbiased, infallible audit professional.
- D. The internal auditor must apply the skill and care of an expert whose primary responsibility is detecting fraud.
Answer: C
NEW QUESTION # 112
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