ACFE Review - Fraud Prevention and
Deterrence Question and answers
already passed
T/F: In a public company, the chief executive officer (CEO) should be charged
with having primary responsibility for the oversight of the company's
compliance program. - correct answer ✔False
T/F: According to the International Organization of Supreme Audit Institutions'
(INTOSAI) standards for public-sector audits, the requirements for private-
sector external auditors found in International Standard on Auditing (ISA) 240,
'The Auditor's Responsibility Relating to Fraud in an Audit of Financial
Statements,' also apply to government auditors during audits of public-sector
financial statements. - correct answer ✔True
Which of the following should be covered in employee anti-fraud training? -
correct answer ✔Examples of past transgressions and how they were
handled.
T/F: Criminal activities involving corporations stem primarily from the
organization's subcultures and values, rather than from the attitudes and
characteristics of the individuals carrying out the crimes. - correct answer
✔True
According to 'Fraud Risk Management Guide,' a joint publication by COSO
and the ACFE, who has responsibility for managing fraud risk? - correct
answer ✔Personnel at all levels of the organization
T/F: A fraud risk assessment report should reflect the assessment team's
subjective perspective and opinions that were formed during the assessment
engagement. - correct answer ✔False
, Which of the following is NOT one of the eight principles for risk management
provided by the International Organization for Standardization (ISO)
31000:2018? - correct answer ✔The risk management program is based on
effective leadership and commitment.
To reinforce an anti-fraud culture, management should: - correct answer ✔All
of the above
Which of the following is among the audit committee's responsibilities for fraud
risk management? - correct answer ✔Receiving regular reports on the status
of reported or alleged fraud
T/F: Luna, a Certified Fraud Examiner (CFE), was hired to investigate a
company. After she carefully examined the company, she issued a report that
stated, in part, "In my opinion, this operation is free of material fraud." Such an
opinion is permitted under the ACFE Code of Professional Ethics. - correct
answer ✔False
Which of the following statements regarding recommended vendor due
diligence procedures is LEAST ACCURATE? - correct answer ✔An
organization should request that new vendors fill out a questionnaire about
their background immediately after signing a contract with them.
Which of the following parties is ultimately responsible for the prevention and
detection of fraud within an organization? - correct answer ✔Management
The primary purpose of International Standard on Auditing (ISA) 240 is to: -
correct answer ✔Establish standards and provide guidance on the auditor's
responsibility to consider fraud in an audit of financial statements
Deterrence Question and answers
already passed
T/F: In a public company, the chief executive officer (CEO) should be charged
with having primary responsibility for the oversight of the company's
compliance program. - correct answer ✔False
T/F: According to the International Organization of Supreme Audit Institutions'
(INTOSAI) standards for public-sector audits, the requirements for private-
sector external auditors found in International Standard on Auditing (ISA) 240,
'The Auditor's Responsibility Relating to Fraud in an Audit of Financial
Statements,' also apply to government auditors during audits of public-sector
financial statements. - correct answer ✔True
Which of the following should be covered in employee anti-fraud training? -
correct answer ✔Examples of past transgressions and how they were
handled.
T/F: Criminal activities involving corporations stem primarily from the
organization's subcultures and values, rather than from the attitudes and
characteristics of the individuals carrying out the crimes. - correct answer
✔True
According to 'Fraud Risk Management Guide,' a joint publication by COSO
and the ACFE, who has responsibility for managing fraud risk? - correct
answer ✔Personnel at all levels of the organization
T/F: A fraud risk assessment report should reflect the assessment team's
subjective perspective and opinions that were formed during the assessment
engagement. - correct answer ✔False
, Which of the following is NOT one of the eight principles for risk management
provided by the International Organization for Standardization (ISO)
31000:2018? - correct answer ✔The risk management program is based on
effective leadership and commitment.
To reinforce an anti-fraud culture, management should: - correct answer ✔All
of the above
Which of the following is among the audit committee's responsibilities for fraud
risk management? - correct answer ✔Receiving regular reports on the status
of reported or alleged fraud
T/F: Luna, a Certified Fraud Examiner (CFE), was hired to investigate a
company. After she carefully examined the company, she issued a report that
stated, in part, "In my opinion, this operation is free of material fraud." Such an
opinion is permitted under the ACFE Code of Professional Ethics. - correct
answer ✔False
Which of the following statements regarding recommended vendor due
diligence procedures is LEAST ACCURATE? - correct answer ✔An
organization should request that new vendors fill out a questionnaire about
their background immediately after signing a contract with them.
Which of the following parties is ultimately responsible for the prevention and
detection of fraud within an organization? - correct answer ✔Management
The primary purpose of International Standard on Auditing (ISA) 240 is to: -
correct answer ✔Establish standards and provide guidance on the auditor's
responsibility to consider fraud in an audit of financial statements
