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

1. Which of the following is a TRUE statement regarding the role of a well-designed organizational structure within an anti-fraud program?

A) It is best to avoid formally documenting organizational structures to limit fraudsters' ability to circumvent oversight controls.
B) A confused organizational structure makes it harder for a fraudster to perpetrate and conceal their misdeeds.
C) Flowcharts displaying departmental structures can be a helpful tool in communicating the proper flow of information as part of fraud prevention efforts.
D) Communicating the proper flow of information to everyone in the organization can increase the organization's vulnerability to fraud.

2. According to ACFE research, which of the following is TRUE regarding the three major categories of occupational fraud?

A) Corruption schemes are the costliest category of occupational fraud.
B) Financial statement fraud schemes are the most common category of occupational fraud.
C) Identity theft is both the most common and costliest category of occupational fraud.
D) Asset misappropriation schemes are the most common category of occupational fraud.

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

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

4. Which of the following statements is MOST ACCURATE regarding an effective system of anti- fraud controls?

A) It deters fraudsters by increasing the perception that fraud will be detected.
B) It focuses more on preventive controls than detective controls.
C) It fully eliminates the risk of fraud by removing opportunities for misbehavior.
D) It prioritizes implementing detective controls over preventive controls.

5. Which of the following scenarios is LEAST LIKELY to be considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics?

A) Karen accepts an assignment to search for fraud indicators at an organization in which she is an undisclosed partner.
B) Lori accepts an assignment to infiltrate her employer and transmit inside information to a competitor.
C) Ren undertakes an external engagement that requires him to work outside the normal work hours of his primary employer.
D) DeVon undertakes engagements for both sides in a case of an alleged fraudulent warranty scheme.

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