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 May 22, 2026
Total Questions : 284

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Questions 2

During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization ' s reported revenue amount However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

Options:

The auditors should reconsider the reliability of the audit evidence they have previously obtained.

The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.

The auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.

The auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold

Discussion 0

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Questions 3

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:

Options:

Tell White that she will try to keep the information as confidential as possible

Agree that the information will be held in confidence, even though Blue knows it will not be

Take White ' s request straight to ABC Corp. ' s management

Not agree to the request for confidentiality

Discussion 0

Questions 4

In response to an employee ' s failure to meet performance expectations, a manager demotes the employee to a junior-level position. This is an example of what type of behavioral response?

Options:

Positive reinforcement

Negative reinforcement

Punishment

None of the above

Discussion 0

Questions 5

Po, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination. She did not find fraud, but in Po ' s opinion, there were several internal control deficiencies that, if not corrected, could facilitate the occurrence of fraud. Under the ACFE Code of Professional Ethics, which of the following is TRUE?

Options:

Po may include her opinion on the internal controls in her report to management only if management agrees to compensate her for the addition.

Po may include her opinion on the internal controls in her report to management because it is a technical matter.

Po may include her opinion on the internal controls in her report to management only if she amends her contract.

Po may not include her opinion on the internal controls in her report to management because that is not what she was hired to assess.

Discussion 0

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