| Exam Code | CFE-FRAUD-PREVENTION-AND-DETERRENCE |
| Exam Name | Certified Fraud Examiner - Fraud Prevention and Deterrence Exam |
| Questions | 284 |
| Update Date | May 28,2026 |
| Price |
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Which of the following is NOT a purpose served by a professional organization s code of conduct?
A. It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles
B. It serves as a reference and benchmark for ethical guidance
C. It provides clear answers to all ethical dilemmas the organization s members might face
D. It facilitates practical enforcement and profession-wide internal discipline
According to behaviorists such as B F Skinner, which of the following scenarios is mostly likely to occur when an undesired behavior is punished?
A. The behavior will be permanently suppressed
B. The behavior will return when punishment ceases
C. The behavior will occur more frequently.
D. The behavior will not be affected by the punishment
Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?
A. Establishing well-defined job descriptions to facilitate performance evaluations
B. Evaluating employee performance based solely on productivity and profit
C. Tying employee compensation to reasonable organizational performance goals
D. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks
Which of the following is among the audit committee s primary responsibilities related to fraud risk management?
A. Understanding how internal and external audit strategies address fraud risk
B. Designing the fraud risk management program
C. Punishing fraud perpetrators discovered through fraud risk management activities
D. Implementing the fraud risk management program
Effectively documenting and communicating organizational hierarchies, including the proper flow of information, can be a helpful tool in preventing fraud
A. True
B. False
Criminologist Charles McCaghy has slated that profit pressure is the single most compelling factor behind deviance by organizations
A. True
B. False
Blue, a Certified Fraud Examiner (CFE). had an ethical dilemma regarding the contract governing one of his professional engagements. Which of the following sources of guidance would be considered the lowest level of reference to help Blue in determining the most ethical course of action?
A. Contract law
B. The handling of similar situations by individuals he respects
C. Moral philosophical principles
D. The ACFE Code of Professional Ethics
According to International Auditing Standard (ISA) 240. the two types of intentional financial statement misstatements that are relevant to the auditor are
A. Misstatements resulting from fraudulent financial reporting and misstatements resulting from misappropriation of assets
B. Misstatements resulting from revenue manipulation and misstatements resulting from expense manipulation
C. Misstatements affecting the income statement and misstatements affecting the balance sheet
D. Immaterial misstatements and material misstatements
A corporation can generally be held criminally responsible for criminal acts committed by its employees even if those in management had no knowledge of or participation in the underlying events.
A. True
B. False
A report by a fraud examiner is privileged from disclosure by anyone other than the client
A. True
B. False
