CFE-FRAUD-PREVENTION-AND-DETERRENCE Online Practice Questions and Answers

Which of the following is FALSE regarding corporate governance'

A. Effective corporate governance practices are most necessary in an organization in which the owners are not also the individuals responsible for setting and executing the business strategy

B. Effective corporate governance practices are considered to be the foundation of fraud risk management.

C. Corporate governances primary purpose is to ensure the accuracy of the organization's financial reports

D. An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization.

Professional auditing standards suggest that auditors incorporate an "element of predictability" in the selection of auditing procedures to be performed so that they ensure the same areas are tested in the same manner during each audit.

A. True

B. False

Which of the following is TRUE regarding the communication of the fraud risk assessment process?

A. The communication should be in the form of a personalized message from the assessment sponsor

B. The communication should actively encourage employees to participate in the assessment process

C. The communication should be visibly disseminated throughout the business

D. All of the above

Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the most effective way for Smith to encourage his team members to keep their cash drawers in balance?

A. Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.

B. Take away an hour of paid time off for each time the drawer is over or short.

C. Publicly call out and criticize employees whose cash drawers are over or short

D. Demote employees who continue to have reconciliation discrepancies

Employees should be kepi unaware that management is watching for lifestyle and behavior changes in staff members that might indicate fraud

A. True

B. False

Effective risk management involves balancing which of the following?

A. The organization s internal controls and its financial goals

B. The organization s financial reporting model and its risk tolerance

C. The organization s regulatory requirements and its available resources

D. The organization s risk appetite and its ability to meet its objectives

In response to an employee s failure to meet performance expectations. a manager demotes the employee to a junior-level position This is an example of what type of behavioral response?

A. Negative reinforcement

B. Punishment

C. Positive reinforcement

D. None of the above

Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but it allows exceptions for unknowing violations of the law

A. True

B. False

A corporation can generally be held criminally responsible for criminal acts committed by its employees even if those in management had no knowledge of or participation in the underlying events.

A. True

B. False

Criminologist Charles McCaghy has slated that profit pressure is the single most compelling factor behind deviance by organizations

A. True

B. False