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

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

A) True
B) False

2. A professional organization's code of conduct serves which of the following purposes?

A) It offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.
B) It acts as a substitute for legal and regulatory requirements that apply to the profession.
C) It functions as a reference and benchmark for ethical guidance.
D) It replaces the need for individuals to consult their own principles.

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

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

4. According to Silk and Vogel's research, which of the following is one of the ways that businesses rationalize illegal conduct?

A) Corporate violations that involve large sums of money are often spread among so many organizations that each gains very little individually.
B) Violations are caused by innocent errors in judgment rather than economic necessity.
C) Government regulations are justified because the additional costs of regulations and bureaucratic procedures increase government profits.
D) Government regulation is unnecessary because the matters being regulated are unimportant.

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) Emphasizing to all employees that the company maintains a policy of zero tolerance for fraud.
D) Maintaining a policy that allows employees one warning before they are terminated for committing fraud

Solutions: