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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:

1. A company implements a fraud hotline but does not allow anonymous reporting. What is the MOST likely consequence?

A) Elimination of false allegations
B) Reduced employee concerns about retaliation
C) Increased reporting rates
D) Fewer tips and reduced reporting effectiveness

2. Warren wants to decrease the amount of cash register discrepancies among the cashiers at his small business. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Warren to encourage the cashiers to reduce their discrepancies and keep their cash drawers balanced?

A) Take away an hour of paid time off from an employee each time their cash drawer is not balanced.
B) Publicly praise employees every time their cash drawers are balanced.
C) Deduct an hour's worth of pay for anyone whose cash drawer is not perfectly reconciled each day.
D) Demote employees who continue to have reconciliation discrepancies.

3. Which of the following is FALSE regarding a background check policy for employees?

A) At a minimum, management should conduct a background check on any candidate who will have constant access to cash, checks, and credit card numbers, or other easily stolen items.
B) When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.
C) As part of the screening process, management should contact the references provided by the job candidate.
D) Where permitted by law, management should run a background check on any existing employee who is being promoted to a position that includes access to sensitive or valuable company resources, even if a background check was run on the individual at the time of hire

4. Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Smith to encourage his team members to keep their cash drawers in balance?

A) Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.
B) Demote employees who continue to have reconciliation discrepancies
C) Take away an hour of paid time off for each time the drawer is over or short
D) Publicly call out and criticize employees whose cash drawers are over or short.

5. Aaron, a government auditor, is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions. Which of the following is TRUE regarding Aaron's consideration of fraud during this engagement?

A) Aaron should remain alert for fraud but does not need to consider the potential for abuse or other misconduct during the audit engagement.
B) Aaron likely does not have the ability to withdraw from the engagement even if fraud is identified during the audit.
C) Aaron's audit objectives are likely narrower than those of a private-sector financial statement audit.
D) Aaron does not need to comply with the requirements found in International Standard on Auditing
240 as they do not apply to the engagement.

Solutions: