ACFE Updated CFE-Fraud-Prevention-and-Deterrence Exam Questions and Answers by fallon

Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer

Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner's ownership interest is disclosed

Undertaking engagements for both sides in a case of an alleged product substitution scheme

Accepting an assignment to secretly infiltrate the fraud examiner's employing organization and transmit inside information to another party

Completely eliminate inherent fraud risk.

Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.

Completely eliminate residual fraud risk

Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk

An organization should subject vendors to an internal audit conducted by the organization's own auditors before agreeing to do business with them.

An organization should avoid revealing that it is seeking information about potential vendors prior to starting a relationship with them.

An organization should request that new vendors fill out a questionnaire about their background immediately after signing a contract with them.

An organization should include a clause in the contract requiring the vendor to report any misconduct before entering into an agreement with them.

ArtisanWare only needs to undertake due diligence procedures if EFG conducts business in countries with known corruption risks.

ArtisanWare does not need to take any specific procedures to verify EFG's identity before accepting the transaction.

ArtisanWare should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination.

ArtisanWare should examine EFG's net worth as part of deciding whether to allow the purchase on credit.