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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:
1. Reputational damage is an indirect cost of fraud that can be difficult for organizations to calculate.
A) False
B) True
2. The objectives of a fraud risk management program include:
A) All of the above
B) Punishing fraud perpetrators
C) Limiting the damage caused by fraud occurrences
D) Proactively identifying fraud risks
3. XYZ. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that XYZ is subject to?
A) XYZ is required to comply with G20'OECD Principles of Corporate Governance.
B) XYZ is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions
C) XYZ is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.
D) XYZ must comply with the various laws and regulations in the countries in which it operates
4. Which statement BEST describes fraud deterrence?
A) Fraud deterrence eliminates the need for internal controls
B) Fraud deterrence focuses only on punishment after fraud occurs
C) Fraud deterrence guarantees fraud will never occur
D) Fraud deterrence seeks to reduce the likelihood of fraud through prevention and detection measures
5. Which of the following is TRUE regarding the internal audit function's reporting responsibilities pertaining to fraud?
A) The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence.
B) The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.
C) The internal audit function should discuss how and when to report fraud-related issues with senior management and the board of directors before such issues arise.
D) The internal audit function is permitted, but not required, to periodically report about the organization's fraud risks to senior management and the board of directors.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: C |



