CFE-Fraud-Prevention-and-Deterrence Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Questions and Answers

Receipt of kickbacks

Espionage by competitors

Payment of bribes

Aiding and abetting vendor fraud

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

Social control theory

Operant theory

Cognitive theory

Behavioral theory

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

Operational risk assessment

Internal control

Fraud risk management

Financial reporting

Tell the nonprofit's board of trustees about Charles

Report Charles to law enforcement

Not disclose the information about Charles.

Resign from the engagement.

Management seeks out diversity in attitudes and perspectives when hiring employees

Rewards are given to employees who challenge the status quo

Management links employee performance goals with company performance goals

All of the above

Internal auditors

The compliance function

Management

External auditors

Proactively identifying fraud risks

Limiting the damage caused by fraud occurrences

Punishing fraud perpetrators

All of the above

Positive reinforcement

Negative reinforcement

Punishment

None of the above

Include descriptions of the procedures that management uses to detect fraud.

Include examples of prior employee misconduct and how those situations were handled.

Be restricted to formal educational mechanisms to reinforce the importance of the message.

Be presented by organizational executives or anti-fraud professionals only.

Event avoidance

Risk tolerance

Compliance

Review and revision

Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.

Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file. Susan complied with the court order, even though she did not have the client's authorization to do so.

All of the above are violations

Organizations should emphasize that rules regarding whistleblower protections are only intended for lower level employees who might be more vulnerable to retaliation.

Organizations should implement a clear whistleblower policy that lists out every type of misconduct that has ever been reported at the company.

Organizations should publicize their whistleblower procedures internally but should avoid communicating any procedural information to parties outside of the organization.

Organizations should establish formal consequences that are to be imposed upon employees at the company who retaliate against a whistleblower.

The behavior will return when punishment ceases

The behavior will be permanently suppressed

The behavior will occur more frequently.

The behavior will not be affected by the punishment

Blue should consider Green's expected purchasing pattern and method of payment in determining whether to accept the transaction.

Blue only needs to undertake due diligence procedures if Green is requesting to pay on credit.

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

Blue does not need to undertake any specific due diligence procedures for this transaction.

True

False

Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place

Create an environment in which employees feel safe challenging management's decisions

implement two separate sets of ethics policies, one for management and one for employees

All of the above