Review Sessions – CFE Certified Fraud
Examiner Examination Preparation
Course 2025 updated already passed
Dr. Steve Albrecht's research indicates that the personal characteristics MOST
COMMON among fraud perpetrators are a tendency to live beyond their means,
an overwhelming desire for personal gain, and high personal debt.
A. True
B. False - correct answer ✔✔A. True
Research shows that a criminal's SOCIAL STATUS or CLASS is the determining
aspect of white-collar crime.
A. True
B. False - correct answer ✔✔B. False
Organizational OPPORTUNITY remains the determining aspect of white-collar
crime. Research shows that a criminal's position in an organization & their ability
to organize the scheme have far more bearing than SOCIAL STATUS or CLASS alone
According to The Institute of Internal Auditors' (IIA) International Standards for
the Professional Practice of Internal Auditing, DUE PROFESSIONAL CARE IMPLIES
INFALLIBILITY.
A. True
B. False - correct answer ✔✔B. False
,The IIA Standard 1220 stated that an IA must apply the care & skill expected of a
reasonably prudent & competent individual. However, that due professional care
DOES NOT IMPLY INFALLIBILITY
If an external auditor discovers evidence of potential fraud, they are PREVENTED
FROM DISCLOSING THESE FINDINGS TO ANYONE in order to protect client
confidentiality.
A. True
B. False - correct answer ✔✔B. False
A detailed anti-fraud policy that includes specific examples of fraud can give
management legal grounds to investigate and punish violators.
A. True
B. False - correct answer ✔✔A. True
In countries with limited legal protections for whistleblowers, employment laws
might be used as a framework to protect employees when they encounter
retaliation for reporting workplace misconduct.
A. True
B. False - correct answer ✔✔A. True
Failing to properly supervise all assistants and others who are delegated work on a
fraud examination engagement is a violation of the ACFE Code of Professional
Ethics.
A. True
,B. False - correct answer ✔✔A. True
Which of the following is NOT one of the factors that Diane Vaughan cites as
contributing to organizations being inherently prone to committing crime?
A. Organizations tend to recruit and attract similar individuals
B. Employees are frequently transferred and expected to work long hours
C. Long-term loyalty is encouraged through company retirement and benefits
D. Rewards are given to employees WHO CHALLENGE THE COMPANY or how it
works - correct answer ✔✔D. Rewards are given to employees who challenge the
company or how it works
According to the authors of Crimes of the Middle Classes, which of the following
factors has contributed to the rising problem of economic crime?
A. The economy's increased reliance on credit
B. The distribution of large amounts of money from government programs
C. The increased opportunity for wrongdoing as a result of advancing information
technologies
D. All of the above - correct answer ✔✔D. All of the above
When gathering information as part of a fraud risk assessment, both SURVEYS and
ANONYMOUS FEEDBACK mechanisms provide an effective way to conduct
CANDID ONE-ON-ONE CONVERSATIONS with employees.
A. True
B. False - correct answer ✔✔B. False
, Which of the following mechanisms can be used to help increase the perception
of detection in an organization?
A. Rewards for whistleblowers
B. Hotlines and reporting programs
C. Employee anti-fraud education
D. All of the above - correct answer ✔✔D. All of the above
As a strategy to control crime, _________ is designed to achieve CONFORMITY TO
THE LAW by providing economic incentives for voluntary adherence to the law
and using administrative efforts to control violations before they occur.
A. Deterrence
B. Compliance
C. Prevention
D. None of the above - correct answer ✔✔B. Compliance
Compliance is designed to ACHIEVE CONFORMITY TO THE LAW WITHOUT HAVING
TO DETECT, PROCESS, OR PENALIZE VIOLATORS. Compliance systems provide
ECONOMIC INCENTIVES FOR VOLUNTARY COMPLIANCE & USE ADMINISTRATIVE
EFFORTS TO CONTROL VIOLATIONS BEFORE THEY OCCUR.
Meanwhile, Deterrence is designed to DETECT VIOLATIONS, DETERMINE WHO IS
RESPONSIBLE, & PENALIZE THE OFFENDER. Deterrence system try to control the
IMMEDIATE BEHAVIOR of individuals, NOT the LONG-TERM BEHAVIORS targeted
by Compliance systems
Efforts to control corporate crime generally include which of the following
approaches?
Examiner Examination Preparation
Course 2025 updated already passed
Dr. Steve Albrecht's research indicates that the personal characteristics MOST
COMMON among fraud perpetrators are a tendency to live beyond their means,
an overwhelming desire for personal gain, and high personal debt.
A. True
B. False - correct answer ✔✔A. True
Research shows that a criminal's SOCIAL STATUS or CLASS is the determining
aspect of white-collar crime.
A. True
B. False - correct answer ✔✔B. False
Organizational OPPORTUNITY remains the determining aspect of white-collar
crime. Research shows that a criminal's position in an organization & their ability
to organize the scheme have far more bearing than SOCIAL STATUS or CLASS alone
According to The Institute of Internal Auditors' (IIA) International Standards for
the Professional Practice of Internal Auditing, DUE PROFESSIONAL CARE IMPLIES
INFALLIBILITY.
A. True
B. False - correct answer ✔✔B. False
,The IIA Standard 1220 stated that an IA must apply the care & skill expected of a
reasonably prudent & competent individual. However, that due professional care
DOES NOT IMPLY INFALLIBILITY
If an external auditor discovers evidence of potential fraud, they are PREVENTED
FROM DISCLOSING THESE FINDINGS TO ANYONE in order to protect client
confidentiality.
A. True
B. False - correct answer ✔✔B. False
A detailed anti-fraud policy that includes specific examples of fraud can give
management legal grounds to investigate and punish violators.
A. True
B. False - correct answer ✔✔A. True
In countries with limited legal protections for whistleblowers, employment laws
might be used as a framework to protect employees when they encounter
retaliation for reporting workplace misconduct.
A. True
B. False - correct answer ✔✔A. True
Failing to properly supervise all assistants and others who are delegated work on a
fraud examination engagement is a violation of the ACFE Code of Professional
Ethics.
A. True
,B. False - correct answer ✔✔A. True
Which of the following is NOT one of the factors that Diane Vaughan cites as
contributing to organizations being inherently prone to committing crime?
A. Organizations tend to recruit and attract similar individuals
B. Employees are frequently transferred and expected to work long hours
C. Long-term loyalty is encouraged through company retirement and benefits
D. Rewards are given to employees WHO CHALLENGE THE COMPANY or how it
works - correct answer ✔✔D. Rewards are given to employees who challenge the
company or how it works
According to the authors of Crimes of the Middle Classes, which of the following
factors has contributed to the rising problem of economic crime?
A. The economy's increased reliance on credit
B. The distribution of large amounts of money from government programs
C. The increased opportunity for wrongdoing as a result of advancing information
technologies
D. All of the above - correct answer ✔✔D. All of the above
When gathering information as part of a fraud risk assessment, both SURVEYS and
ANONYMOUS FEEDBACK mechanisms provide an effective way to conduct
CANDID ONE-ON-ONE CONVERSATIONS with employees.
A. True
B. False - correct answer ✔✔B. False
, Which of the following mechanisms can be used to help increase the perception
of detection in an organization?
A. Rewards for whistleblowers
B. Hotlines and reporting programs
C. Employee anti-fraud education
D. All of the above - correct answer ✔✔D. All of the above
As a strategy to control crime, _________ is designed to achieve CONFORMITY TO
THE LAW by providing economic incentives for voluntary adherence to the law
and using administrative efforts to control violations before they occur.
A. Deterrence
B. Compliance
C. Prevention
D. None of the above - correct answer ✔✔B. Compliance
Compliance is designed to ACHIEVE CONFORMITY TO THE LAW WITHOUT HAVING
TO DETECT, PROCESS, OR PENALIZE VIOLATORS. Compliance systems provide
ECONOMIC INCENTIVES FOR VOLUNTARY COMPLIANCE & USE ADMINISTRATIVE
EFFORTS TO CONTROL VIOLATIONS BEFORE THEY OCCUR.
Meanwhile, Deterrence is designed to DETECT VIOLATIONS, DETERMINE WHO IS
RESPONSIBLE, & PENALIZE THE OFFENDER. Deterrence system try to control the
IMMEDIATE BEHAVIOR of individuals, NOT the LONG-TERM BEHAVIORS targeted
by Compliance systems
Efforts to control corporate crime generally include which of the following
approaches?
