CFE-FRAUD-PREVENTION-AND-DETERRENCE Online Practice Questions and Answers

According to G20/OECD Principles of Corporate Governance (the Principles):

A. Governments should have in place a corporate governance framework that promotes transparent and fair markets

B. Companies should disclose all financial information to investors, regardless of the cost burden of the disclosure

C. A corporate governance framework should focus on the rights of shareholders but does not need to include the rights of other organizational stakeholders

D. All of the above

Which of the following statements is FALSE?

A. Controls do little good in preventing theft and fraud if those at risk do not know of their presence

B. Most experts agree that it is harder to detect frauds than to prevent them

C. Conducting covert audits is among the most effective fraud prevention methods

D. Educating employees about company hotlines and reporting programs increases their perception of detection

The International Organization of Securities Commissions' (IOSCO) Principles for Auditor Oversight states that auditor oversight should involve a regular review process designed to ascertain whether audit firms adhere to quality control policies and procedures.

A. True

B. False

According to The Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing, which of the following should the internal audit team evaluate in its assessment of the risk management process?

A. The materiality of the organization s financial statements

B. The organization s fraud risk management initiatives

C. The management team's assessment of the internal controls over financial reporting

D. The organization s risk exposures relating to the sale of assets

The theory of differential association is used frequently to explain white-collar criminality Which of the following is NOT one of the assertions or principles of differential association?

A. Criminal behavior is learned from other people in a process of communication

B. Criminal behavior is learned using the same mechanisms as other learning

C. Criminal behavior is acquired through participation with intimate personal groups

D. The process of learning criminal behavior Is the same as pure imitation

The generation and use of relevant, quality information to support the functioning of internal control is a principle related to which component of the Committee of Sponsoring Organizations of the Treadway Commissions (COSO) Internal Control--Integrated Framework (the Framework)?

A. Risk assessment

B. Control environment

C. Monitoring

D. Information and communication

In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.

A. True

B. False

A report by a fraud examiner is privileged from disclosure by anyone other than the client

A. True

B. False

Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?

A. Establishing well-defined job descriptions to facilitate performance evaluations

B. Evaluating employee performance based solely on productivity and profit

C. Tying employee compensation to reasonable organizational performance goals

D. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks

Which of the following is NOT a purpose served by a professional organization s code of conduct?

A. It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles

B. It serves as a reference and benchmark for ethical guidance

C. It provides clear answers to all ethical dilemmas the organization s members might face

D. It facilitates practical enforcement and profession-wide internal discipline