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Certified Fraud Examiner (CFE) set 1
from ACFE Questions and Correct
Answers/ Latest Update / Already
Graded
According to The Institute of Internal Auditors' International Standards
for the Professional Practice of Internal Auditing, due professional
care implies infallibility.
A. True
B. False
Ans: False
Which of the following is TRUE regarding organizational structure?
A. Companies with departments that are isolated geographically
have a reduced risk of fraud
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B. The existence of many specialized departments within a
company generally increases the overall risk of fraud within the
organization
C. Misbehavior is more likely to be detected in a complex
organizational structure than in a simple organizational structure
D. All of the above
Ans: The existence of many specialized departments within a company
generally increases the overall risk of fraud within the organization
Detective anti-fraud controls include all of the following EXCEPT:
A. Hotline
B. Proactive data analysis techniques
C. Physical inspections
D. Hiring policies and procedures
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Ans: Hiring policies and procedures
According to AU Section 240, the auditor's assessment of the risk of
material misstatement due to fraud at the financial statement level
should have an effect on which of the following aspect(s) of an
audit?
A. Consideration of accounting principles used
B. Assignment and supervision of personnel
C. Choice of auditing procedures
D. All of the above
Ans: All the above
The risk of the auditor not detecting a material misstatement resulting
from employee fraud is greater than the risk of the auditor not
detecting a material misstatement resulting from management
fraud.
Certified Fraud Examiner (CFE) set 1
from ACFE Questions and Correct
Answers/ Latest Update / Already
Graded
According to The Institute of Internal Auditors' International Standards
for the Professional Practice of Internal Auditing, due professional
care implies infallibility.
A. True
B. False
Ans: False
Which of the following is TRUE regarding organizational structure?
A. Companies with departments that are isolated geographically
have a reduced risk of fraud
,2 | Page
B. The existence of many specialized departments within a
company generally increases the overall risk of fraud within the
organization
C. Misbehavior is more likely to be detected in a complex
organizational structure than in a simple organizational structure
D. All of the above
Ans: The existence of many specialized departments within a company
generally increases the overall risk of fraud within the organization
Detective anti-fraud controls include all of the following EXCEPT:
A. Hotline
B. Proactive data analysis techniques
C. Physical inspections
D. Hiring policies and procedures
, 3 | Page
Ans: Hiring policies and procedures
According to AU Section 240, the auditor's assessment of the risk of
material misstatement due to fraud at the financial statement level
should have an effect on which of the following aspect(s) of an
audit?
A. Consideration of accounting principles used
B. Assignment and supervision of personnel
C. Choice of auditing procedures
D. All of the above
Ans: All the above
The risk of the auditor not detecting a material misstatement resulting
from employee fraud is greater than the risk of the auditor not
detecting a material misstatement resulting from management
fraud.
