Certified Fraud Examiner (CFE) set 1
from ACFE 2025 Questions and Answers
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 - --CORRECT ANSWER--False
Which of the following is TRUE regarding organizational structure?
A. Companies with departments that are isolated geographically have a reduced
risk of fraud
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
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, D. All of the above - --CORRECT ANSWER--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 - --CORRECT ANSWER--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 - --CORRECT ANSWER--All the above
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
from ACFE 2025 Questions and Answers
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 - --CORRECT ANSWER--False
Which of the following is TRUE regarding organizational structure?
A. Companies with departments that are isolated geographically have a reduced
risk of fraud
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
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, D. All of the above - --CORRECT ANSWER--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 - --CORRECT ANSWER--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 - --CORRECT ANSWER--All the above
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
