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

1. Which of the following is the MOST EFFECTIVE way for management to respond to incidents of fraud within an organization?

A) Reporting known incidents of fraud to law enforcement
B) Maintaining a policy that allows employees one warning before they are terminated for committing fraud
C) Punishing frauds only if they have a significant financial impact
D) Keeping all known incidents of fraud private to protect the identities of parties involved

2. Which of the following is one of the assertions or principles of the theory of differential association?

A) Criminal behavior is explained by an individual's general needs and values.
B) Criminal behavior is learned using the same mechanisms as other learning.
C) Criminal behavior is learned through a process that is the same as imitation.
D) Criminal behavior is acquired through casual interactions in large groups.

3. Fraud risks related to corruption include:

A) Reporting revenue in the wrong accounting period
B) Espionage by competitors
C) Payment of bribes to procure business
D) Fraudulent customer payments

4. The availability of suitable targets, absence of capable guardians, and presence of motivated offenders are the three most important elements that influence crime according to which of the following criminological theories?

A) Rational choice theory
B) Routine activities theory
C) Social control theory
D) Conditioning theory

5. Jones, an accounting manager for a software company, wants to improve her team's adherence to the company's formal accounting policies and procedures and reduce the number of process exceptions they experience. According to behaviorist theories, which of the following options would be the most effective way for Jones to condition her staff to follow the company's formal accounting processes?

A) Offer a bonus to anyone who experiences no process exceptions for ninety days-
B) Demote employees who do not adhere to the expected processes.
C) Publicly call out and criticize employees who deviate from the formal processes.
D) Take away a day of paid time off for each process exception.

Solutions: