CFE Fraud Prevention and Deterrence Dumps Updated (V13.03) – Sharing CFE Fraud Prevention and Deterrence Free Dumps (Part 1, Q1-Q40) Online

You can learn the ACFE CFE Fraud Prevention and Deterrence dumps (V13.03) to prepare for your exam with the most updated exam questions and answers. This version is the latest, containing 262 Q&As to help you prepare more efficiently. These updated CFE Fraud Prevention and Deterrence exam dumps from DumpsBase are created to help you review important exam topics in a focused way. Instead of spending too much time searching through scattered materials, you can use these updated dumps to practice key questions, understand common exam patterns, and identify areas where you still need improvement, which makes your Certified Fraud Examiner – Fraud Prevention and Deterrence Exam preparation more organized and effective. Before downloading the updated dumps, you can check our free demos first.

Sharing CFE Fraud Prevention and Deterrence free dumps (Part 1, Q1-Q40) of V13.03 below:

1. According to behaviorists such as B. F. Skinner, which of the following scenarios is MOST LIKELY to occur when an undesired behavior is punished?

The behavior will return when punishment ceases

The behavior will be permanently suppressed

The behavior will occur more frequently.

The behavior will not be affected by the punishment

2. A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI).

Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?

In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.

The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.

The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement

The objectives of the audit are likely narrower than those of a private-sector financial statement audit.

3. The objective of anti-fraud controls is to:

Completely eliminate inherent fraud risk.

Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.

Completely eliminate residual fraud risk

Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk

4. Which of the following theories suggests that, when considering the possibility of violating a law. people are likely to ask themselves. "What will my spouse think if they find out?"

Social control theory

Operant theory

Cognitive theory

Behavioral theory

5. Which of the following is TRUE regarding prosecutions of white-collar criminals?

Only a small percentage of perpetrators are punished when an organization deals with a fraud case internally.

Most fraud cases are only handled internally and are not referred to law enforcement for prosecution

The primary reason organizations decline to prosecute fraud cases is a belief that their internal discipline methods are sufficient

When fraud cases are handled internally, an employee is more likely to be suspended or put on probation than to be terminated for their crime.

6. Which of the following is a detective anti-fraud control?

Hiring policies and procedures

Independent reconciliations

Separation of duties

Fraud awareness training

7. Having specialized departments within a company often increases the overall risk ot traud by the organization.

True

False

8. 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?

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

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

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

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

9. The internal auditor's fraud-related responsibilities include which of the following?

Obtaining reasonable assurance that the organization's financial statements are free of material misstatements caused by fraud

Overseeing management's actions to manage fraud risks

Evaluating indicators of fraud and deciding whether any further action is necessary or whether an investigation should be recommended

Establishing and maintaining effective anti-fraud controls at a reasonable cost

10. Risk management is focused on balancing the organization's___________with Its____________.

Internal controls; financial reporting model

Regulatory requirements, risk appetite

Objectives; resources

Risk appetite, ability to meet its objectives

11. Professional auditing standards suggest that auditors incorporate an "element of predictability" in the selection of auditing procedures to be performed so that they ensure the same areas are tested in the same manner during each audit.

True

False

12. International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the establishment of anti-fraud internal controls within an organization.

True

False

13. Which of the following criminological theories asserts that the three elements that have the most influence on crime are the availability of suitable targets, absence of capable guardians, and presence of motivated offenders?

Rational choice theory

Differential association theory

Routine activities theory

Social control theory

14. In response to a risk identified during a fraud risk assessment, management decides to implement additional internal control measures.

This response is known as:

Assuming the risk

Mitigating the risk

Avoiding the risk

Transferring the risk

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

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

The assessment should be used to improve employee fraud awareness.

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

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

16. Gregory, an internal auditor, and Brandon, the company's purchasing manager, have had several heated disagreements over purchasing procedures and policies. Gregory has just been told that he will be the lead on the company's fraud risk assessment. During the fraud risk assessment.

Gregory should:

Confront Brandon about the disagreements and discuss how they increase the organization's risk of fraud-

Have someone else perform the fraud risk assessment work related to the purchasing function

Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.

Automatically designate the purchasing function as a high-risk area.

17. Who is ultimately responsible lor ensuring the effectiveness of the organization's anti-fraud program?

Internal auditors

The compliance function

Management

External auditors

18. Gray, an independent Certified Fraud Examiner (CFE), was hired by Green, president of the ABC Corporation, to investigate allegations that one of ABC's employees is taking kickbacks. During the investigation.

Gray teams that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:

Not disclose the information about Green.

Report Green to law enforcement

Tell the company's board of directors about Green.

Resign from the engagement

19. Stevens, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination at ABC Company. His examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently, ABC's management asked Stevens to state in his official examination report that the organization is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. Under the ACFE Code of Professional Ethics. Stevens is permitted to comply with management's request based on the findings of his examination.

True

False

20. During the course of a fraud examination. While, an employee of the ABC Corp.. approaches Blue, a Certified Fraud Examiner (CFE), and tells Blue that she wishes to furnish information in confidence.

Blue also is employed by the ABC Corp. Blue should:

Tell White that she will try to keep the information as confidential as possible

Agree that the information will be held in confidence, even though Blue knows it will not be

Take White's request straight to ABC Corp.'s management

Not agree to the request for confidentiality

21. Consistently punishing perpetrators can be an effective fraud prevention mechanism

True

False

22. Which of the following is an example of organizational crime?

A salesman offering bribes to secure a contract

An accounting clerk forging company checks to herself

A doctor conspiring with patients to Tile false health care insurance claims

Management of several construction companies engaging In bid rigging

23. For its compliance program to be effective, an organization must promote the program through appropriate incentives for compliance.

True

False

24. 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:

The continued pressures of a culture that rewards affluence and success

The economy's increased reliance on credit

The increased constraints of the regulatory environment for businesses

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

25. According to Steve Albrecht's research,______is the most common personal characteristic motivating fraudsters, and ________ is the most common organization-environment factor motivating fraudsters.

High personal debt; lack of separation of duties

Revenge: too much trust in key employees

Living beyond their means, too much trust in key employees

Desire for recognition, lack of separation of duties

26. Which principle of corporate governance pertains to the disclosure of all material matters that the shareholders need to make timely and informed decisions regarding their investment in the company?

Transparency

Fairness

Responsibility

Accountability

27. Glenda. an internal auditor, and Brldgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies. Glenda has just been told that she will be the lead on the company's fraud risk assessment.

During the fraud risk assessment. Glenda should:

Confront Bridgette about the disagreements and discuss how they increase the department's risk of fraud.

Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department.

Automatically designate the accounts receivable department as a high-risk area.

Have someone else perform the fraud risk assessment work related to the accounts receivable department's activities.

28. Formally documenting and communicating organizational hierarchies, including the proper flow of information, can hinder an organization's fraud prevention initiatives.

True

False

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

Internal audit

Confession

Tips

External audit

30. During an external audit of an organization's financial statements. Peter, the external auditor, uncovers significant internal control deficiencies at the audit client's organization. He believes these deficiencies could result in a material misstatement of the financial statements.

Which of the following should Peter do with regard to these findings?

Peter should make a public announcement that he is withdrawing from the audit engagement.

Peter should provide a written communication about the findings to those charged with governance.

Peter should report the findings in writing directly to the appropriate regulatory agencies

Peter should discreetly work with senior management to correct the underlying internal control deficiencies.

31. 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?

Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.

Publicly call out and criticize employees whose cash drawers are over or short.

Take away an hour of paid time off for each time the drawer is over or short

Demote employees who continue to have reconciliation discrepancies

32. Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk.

To most effectively reinforce an anti-fraud culture, management should:

Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place

Create an environment in which employees feel safe challenging management's decisions

implement two separate sets of ethics policies, one for management and one for employees

All of the above

33. 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:

Tell the nonprofit's board of trustees about Charles

Report Charles to law enforcement

Not disclose the information about Charles.

Resign from the engagement.

34. Employees should be kept unaware that management is watching for lifestyle and behavior changes In staff members that might indicate fraud.

True

False

35. Which of the following Is NOT a way that an organization's fraud risk assessment should be Incorporated Into the audit process?

It should be used to assess whether there is a moderate-to-high risk of management overriding controls within the moderate-to-high fraud risk areas.

It should be used to replace the auditor's own identification and assessment of fraud risks.

it should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.

It should be used to design audit tests to evaluate whether the controls are operating effectively.

36. An effective system of anti-fraud controls

Fully eliminates the risk of fraud

Focuses more on detective controls than preventive controls

Focuses more on preventive controls than detective controls

Increases the perception that fraud will be detected

37. In the context of a fraud examination, integrity requires all of the following EXCEPT:

Trustworthiness

A well-developed sense of moral philosophy

Avoidance of conflicts of interest

Refusal to admit errors

38. Which of the following is TRUE regarding corporate governance?

Fraud risk management is considered to be the foundation of effective corporate governance

Corporate governance's primary purpose is to ensure the accuracy of the organization's financial reports

Effective corporate governance practices are most necessary in an organization in which the owners are also the individuals responsible for setting the corporate strategy.

An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization

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

The organization's incentive programs

The possibility of management's override of controls

Risks to the organization's reputation

All of the above

40. Which of the following criminological theories states that individuals make a conscious decision to commit a crime and that crime can be deterred by reducing opportunities for criminal activity and increasing an individual's personal risk of being caught and punished?

Routine activities theory

Differential association theory

Rational choice theory

Social conflict theory

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