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

1. Which of the following is one of the assertions or principles of the theory of differential association?

A) Criminal behavior is learned through a process that is the same as imitation.
B) Criminal behavior is learned using the same mechanisms as other learning.
C) Criminal behavior is acquired through casual interactions in large groups.
D) Criminal behavior is explained by an individual's general needs and values.

2. Which of the following Is FALSE regarding proactive fraud auditing procedures?

A) Fraud assessment questioning techniques are most appropriately used as part of the normal audit process
B) Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods
C) Implementing proactive fraud audit procedures demonstrates management's intention to aggressively look for possible fraudulent conduct
D) Fraud audit procedures should be designed to incorporate an element of surprise

3. A company implements a fraud hotline but does not allow anonymous reporting. What is the MOST likely consequence?

A) Elimination of false allegations
B) Fewer tips and reduced reporting effectiveness
C) Reduced employee concerns about retaliation
D) Increased reporting rates

4. According to Silk and Vogel's research, business leaders rationalize legal violations by asserting that compliance with government regulations is too costly and cuts too heavily into company profits.

A) True
B) False

5. Which of the following is the MOST EFFECTIVE way for management to respond to incidents of fraud within an organization?

A) Keeping all known incidents of fraud private to protect the identities of parties involved
B) Punishing frauds only if they have a significant financial impact
C) Maintaining a policy that allows employees one warning before they are terminated for committing fraud
D) Reporting known incidents of fraud to law enforcement

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