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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q114-Q119):
NEW QUESTION # 114
According to the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control-integrated Framework (the Framework), there are five interrelated components of a company's internal control. Which of the following is NOT among these five components?
- A. Information and communication
- B. Monitoring
- C. Control environment
- D. Independent oversight
Answer: D
NEW QUESTION # 115
ABC. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that ABC is subject to?
- A. ABC is required to comply with G20/OECD Principles of Corporate Governance
- B. ABC must comply with specific listing standards for the stock exchange(s) on which it is listed
- C. ABC is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions
- D. ABC is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.
Answer: B
NEW QUESTION # 116
Which of the following is a best practice to ensure a successful fraud reporting program?
- A. Employees are held accountable for reporting tips that are not able to be substantiated
- B. The company should communicate that fraud, waste, and abuse are more likely to occur in large organizations than small ones.
- C. The company should require employees with information about potential fraud to report it directly and only to their immediate supervisor.
- D. Employees should be informed that, to the extent possible, their names will not be disclosed.
Answer: D
NEW QUESTION # 117
During the course of a fraud examination. While, an employee of the ABC Corp.. approaches Blue, a Certified Fraud Examiner (CFE), and tells Blue that she wishes to furnish information in confidence. Blue also is employed by the ABC Corp. Blue should:
- A. Agree that the information will be held in confidence, even though Blue knows it will not be
- B. Tell White that she will try to keep the information as confidential as possible
- C. Take White's request straight to ABC Corp.'s management
- D. Not agree to the request for confidentiality
Answer: D
NEW QUESTION # 118
Which of the following statements is FALSE?
- A. Educating employees about company hotlines and reporting programs increases their perception of detection
- B. Most experts agree that it is harder to detect frauds than to prevent them
- C. Conducting covert audits is among the most effective fraud prevention methods
- D. Controls are not effective in preventing theft and fraud If those at risk do not know of their presence
Answer: D
NEW QUESTION # 119
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