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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Fraud Prevention and Deterrence | 25% | - Whistleblowing and reporting mechanisms - Ethics and corporate governance - Monitoring, auditing, and continuous improvement - Fraud risk assessment - Fraud risk governance and organizational culture - Fraud prevention programs and frameworks - Fraud deterrence strategies and controls - Anti-fraud policies and procedures - Internal control systems and evaluation |
1. Glenda. an internal auditor, and Brldgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies. Glenda has just been told that she will be the lead on the company's fraud risk assessment. During the fraud risk assessment. Glenda should:
A) Automatically designate the accounts receivable department as a high-risk area.
B) Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department.
C) Have someone else perform the fraud risk assessment work related to the accounts receivable department's activities.
D) Confront Bridgette about the disagreements and discuss how they increase the department's risk of fraud.
2. At the end of an engagement, a Certified Fraud Examiner (CFE) might provide a report to their client about the information uncovered during the investigation. Which of the following statements is TRUE regarding the potential privilege that applies to this report?
A) A fraud examiner's report may be privileged from disclosure in certain circumstances, but it does not have an absolute legal privilege.
B) A fraud examiner's report is privileged from disclosure by anyone other than the client.
C) A fraud examiner's report is considered privileged information and is therefore protected from being legally demanded by outside parties.
D) A fraud examiner's report is only privileged from disclosure if the author is also a professional legal advisor.
3. While, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination She did not find fraud, but. In White's opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence of fraud Under the ACFE Code of Professional Ethics.
White may include her opinion on the controls in her report to management.
A) False
B) True
4. Rosie, a Certified Fraud Examiner (CFE), conducted a fraud examination for her company that led to a confession of guilt from Dean. Which of the following statements in Rosie's verbal report to management would violate the ACFE Code of Professional Ethics?
A) "Dean confessed to embezzlement."
B) "Dean's confession is supported by the evidence."
C) "Dean is guilty of embezzlement."
D) "The evidence does not support Dean's confession."
5. Which of the following is NOT considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics?
A) Accepting an assignment to evaluate the anti-fraud controls at an organization in which the fraud examiner is a shareholder, provided the fraud examiner's ownership interest is disclosed
B) Undertaking engagements for both sides in a case of alleged vendor overbilling
C) Accepting an assignment to secretly infiltrate the fraud examiner's employing organization and transmit inside information to another party
D) Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: A |
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