Expert Answers to ACFE Exam CFE-Fraud-Prevention-and-Deterrence Questions

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Certified Fraud Examiner Certified Fraud Examiner - Fraud Prevention and Deterrence Exam

Certified Fraud Examiner - Fraud Prevention and Deterrence Exam

Last Update Feb 21, 2026
Total Questions : 255

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Questions 2

Terrel, a Certified Fraud Examiner (CFE), unknowingly violates the law one night. Which of the following statements about the ACFE Code of Professional Ethics is TRUE?

Options:

This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel knew the conduct was illegal.

This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel is arrested.

This conduct would not be a violation of the ACFE Code of Professional Ethics under any circumstances.

This conduct would be a violation of the ACFE Code of Professional Ethics.

Discussion 0

Questions 3

Which of the following is one of the four recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

Options:

Provide adequate resources and authority to the internal audit function.

Have a mandatory independent finance committee.

Assign oversight of the hotline reporting program to company shareholders.

Develop a written charter for the audit committee.

Discussion 0

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Questions 4

Based on research regarding the criminogenic tendencies of organizations, employees are more likely to engage in fraudulent behavior when given a direct order to do so by a superior due to an inherent desire to obey people in positions of authority.

Options:

True

False

Discussion 0

Questions 5

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

Options:

Emphasizing to all employees that the company maintains a policy of zero tolerance for fraud.

Keeping all known incidents of fraud private to protect the identities of parties involved.

Maintaining a policy that allows employees one warning before they are terminated for committing fraud

Punishing frauds only if they have a significant financial impact.

Discussion 0