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

1. Mario is charged with implementing a fraud reporting program on behalf of his organization.
Which of the following is a best practice that Mario should follow to ensure that the program is successful?

A) Inform employees that they can make their report anonymously (where permitted by law).
B) Inform employees that the names of all individuals who report misconduct will be shared with the organization's management and law enforcement.
C) Inform employees that they are required to report any information about suspected fraud only to their direct supervisor.
D) Inform employees that they will be held accountable for reporting any tips that cannot be verified.

2. A manager intentionally overrides purchasing controls to expedite a legitimate emergency purchase. Which statement is MOST accurate?

A) Management override can create risk even when the underlying purpose is legitimate
B) Management override always constitutes fraud
C) Emergency situations eliminate control concerns
D) Override automatically strengthens controls

3. Which action BEST demonstrates management's commitment to fraud prevention?

A) Conducting investigations only after losses occur
B) Delegating all ethics responsibilities to auditors
C) Maintaining a visible commitment to ethical conduct and accountability
D) Reducing fraud training expenditures

4. Which of the following is one of the four recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

A) Have a mandatory independent finance committee
B) Provide adequate resources and authority to the internal audit function
C) Assign oversight of the hotline reporting program to company shareholders
D) Develop a written charter for the audit committee

5. 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:

A) implement two separate sets of ethics policies, one for management and one for employees
B) Create an environment in which employees feel safe challenging management's decisions
C) Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
D) All of the above

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