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

1. Why is vendor due diligence important in anti-fraud programs?

A) It replaces procurement controls
B) It eliminates contract negotiations
C) It helps identify fraud, corruption, and compliance risks before engagement
D) It guarantees vendor profitability

2. Professional auditing standards require that auditors incorporate an "element of unpredictability" in the selection of auditing procedures to be performed.

A) False
B) True

3. Julia, an internal auditor, is formalizing a process to evaluate the effectiveness of the company's control system over time, including both ongoing evaluations and periodic, separate evaluations.
Julia's initiative BEST pertains to the component of the Committee of Sponsoring Organizations of the Treadway Commission's COSO Internal Control--Integrated Framework the Framework:

A) Control activities
B) Risk assessment
C) Monitoring
D) Control environment

4. Aaron, a government auditor, is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions. Which of the following is TRUE regarding Aaron's consideration of fraud during this engagement?

A) Aaron likely does not have the ability to withdraw from the engagement even if fraud is identified during the audit.
B) Aaron's audit objectives are likely narrower than those of a private-sector financial statement audit.
C) Aaron does not need to comply with the requirements found in International Standard on Auditing
240 as they do not apply to the engagement.
D) Aaron should remain alert for fraud but does not need to consider the potential for abuse or other misconduct during the audit engagement.

5. Which of the following is NOT a purpose served by a professional organization's code of conduct?

A) It replaces the need for individuals to consult their own conscience.
B) It serves as a reference and benchmark for ethical guidance
C) It facilitates practical enforcement and profession-wide Internal discipline.
D) It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles

Solutions: