CERTIFIED FRAUD EXAMINER STUDY EXAMS GUIDE
QUESTIONS AND ANSWERS SURE A+
✔✔Purpose of U.S. Corporate Sentencing Guidelines - ✔✔To provide incentives for
organizations to maintain internal mechanisms for preventing, detecting, and reporting
criminal conduct.
✔✔Sarbanes-Oxley Act - ✔✔Prevents retaliation against whistle blowers (public &
nonpublic; civil & criminal).
✔✔T/F - In white-collar crime, higher status increases probability of imprisonment. -
✔✔True
✔✔Compliance
Deterrence - ✔✔Control crime through incentives and admin.
Control crime through detection and punishment.
✔✔Mitigating the Risk - ✔✔Reducing the probability of an adverse event
✔✔The lowest level of reference for making moral decisions is ... - ✔✔The law
, ✔✔2016 Report to the Nations identified 3 major categories of occupational fraud: -
✔✔3 major categories of occupational fraud: (1) asset misappropriation [most common,
least costly] (2) corruption (3) financial statement fraud [least common, most costly]
✔✔Rule 10b-5 states (Securities Exchange Act of 1934) ... - ✔✔Prohibits false
statements and other fraudulent activity in connection with the purchase or sale of any
security.
✔✔Rule 702 of the U.S. Federal Rules of Evidence states that ... - ✔✔an expert witness
may give their opinion if doing so will help the court understand related evidence.
✔✔Arraignment - ✔✔The part in open court where the charges are read and the
defendant pleads.
✔✔Futures contract - ✔✔An agreement to buy or sell at a specific date in the future at a
predetermined price.
✔✔T/F - A document is not a forgery just because it contains a false representation. -
✔✔True, written forgeries as a whole must have apparent legal significance (Fake ≠
Forgery).
✔✔T/F - Generally, in the US, a criminal appeal may be made only for errors of law to
which the defendant made timely objection at trial or in pretrial proceedings. - ✔✔True
✔✔Summary Judgement - ✔✔A ruling by the court that no trial is necessary because
some essential facts are not in dispute.
✔✔A bankruptcy crime charge can only be sustained if (3 conditions) ... - ✔✔(1) The
defendant knew about the crimes during pendency (2) The defendant had fraudulent
intent (3) Crimes were committed during pendency.
✔✔Non-permissible reasons for exercising a peremptory challenge (3). - ✔✔Race,
ethnicity, gender
✔✔5 forms of evidence w/definitions - ✔✔(1) Testimonial evidence: oral/written
statements made by witnesses under oath (2) Real evidence: physical objects (3)
Demonstrative evidence: a thing that shows "material proposition" (map, chart,
summary, etc.) (4) Direct evidence: proves or disproves (5) Circumstantial evidence:
inference
✔✔The Treadway Commission - ✔✔Purposed with defining the responsibility of the
auditor in preventing and detecting fraud.
QUESTIONS AND ANSWERS SURE A+
✔✔Purpose of U.S. Corporate Sentencing Guidelines - ✔✔To provide incentives for
organizations to maintain internal mechanisms for preventing, detecting, and reporting
criminal conduct.
✔✔Sarbanes-Oxley Act - ✔✔Prevents retaliation against whistle blowers (public &
nonpublic; civil & criminal).
✔✔T/F - In white-collar crime, higher status increases probability of imprisonment. -
✔✔True
✔✔Compliance
Deterrence - ✔✔Control crime through incentives and admin.
Control crime through detection and punishment.
✔✔Mitigating the Risk - ✔✔Reducing the probability of an adverse event
✔✔The lowest level of reference for making moral decisions is ... - ✔✔The law
, ✔✔2016 Report to the Nations identified 3 major categories of occupational fraud: -
✔✔3 major categories of occupational fraud: (1) asset misappropriation [most common,
least costly] (2) corruption (3) financial statement fraud [least common, most costly]
✔✔Rule 10b-5 states (Securities Exchange Act of 1934) ... - ✔✔Prohibits false
statements and other fraudulent activity in connection with the purchase or sale of any
security.
✔✔Rule 702 of the U.S. Federal Rules of Evidence states that ... - ✔✔an expert witness
may give their opinion if doing so will help the court understand related evidence.
✔✔Arraignment - ✔✔The part in open court where the charges are read and the
defendant pleads.
✔✔Futures contract - ✔✔An agreement to buy or sell at a specific date in the future at a
predetermined price.
✔✔T/F - A document is not a forgery just because it contains a false representation. -
✔✔True, written forgeries as a whole must have apparent legal significance (Fake ≠
Forgery).
✔✔T/F - Generally, in the US, a criminal appeal may be made only for errors of law to
which the defendant made timely objection at trial or in pretrial proceedings. - ✔✔True
✔✔Summary Judgement - ✔✔A ruling by the court that no trial is necessary because
some essential facts are not in dispute.
✔✔A bankruptcy crime charge can only be sustained if (3 conditions) ... - ✔✔(1) The
defendant knew about the crimes during pendency (2) The defendant had fraudulent
intent (3) Crimes were committed during pendency.
✔✔Non-permissible reasons for exercising a peremptory challenge (3). - ✔✔Race,
ethnicity, gender
✔✔5 forms of evidence w/definitions - ✔✔(1) Testimonial evidence: oral/written
statements made by witnesses under oath (2) Real evidence: physical objects (3)
Demonstrative evidence: a thing that shows "material proposition" (map, chart,
summary, etc.) (4) Direct evidence: proves or disproves (5) Circumstantial evidence:
inference
✔✔The Treadway Commission - ✔✔Purposed with defining the responsibility of the
auditor in preventing and detecting fraud.
