FREE PDF QUIZ 2025 PROFESSIONAL CFE-FRAUD-PREVENTION-AND-DETERRENCE: CERTIFIED FRAUD EXAMINER - FRAUD PREVENTION AND DETERRENCE EXAM EXAM SIMULATOR

Free PDF Quiz 2025 Professional CFE-Fraud-Prevention-and-Deterrence: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Exam Simulator

Free PDF Quiz 2025 Professional CFE-Fraud-Prevention-and-Deterrence: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Exam Simulator

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q66-Q71):

NEW QUESTION # 66
A corporation can generally be held criminally responsible for criminal acts committed by its employees even if those in management had no knowledge of or participation in the underlying events.

  • A. False
  • B. True

Answer: B


NEW QUESTION # 67
In the context of fraud examination, integrity requires all of the following EXCEPT:

  • A. Subordination of desires for personal gain to the interests of clients, employers, and the public
  • B. Independence of mental attitude
  • C. Avoidance of differences of opinion
  • D. An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong

Answer: C


NEW QUESTION # 68
Patrick is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking his audit procedures, he discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Patrick's BEST response to these findings?

  • A. Patrick should confront management with his audit findings and try to get a confession.
  • B. Patrick should not disclose his findings to any other parties due to client confidentiality
  • C. Patrick should immediately report his findings to local law enforcement authorities.
  • D. Patrick should report his findings to those charged with governance of the organization.

Answer: D

Explanation:
* International Standards on Auditing (ISAs) Requirements:
* ISAs require auditors to communicate suspected or confirmed fraud to "those charged with governance" of the organization, as they have the responsibility for oversight.
* ISA 240, "The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements," mandates that findings be reported to appropriate governance bodies before considering further actions.
* Confidentiality and Legal Obligations:
* Auditors must maintain confidentiality unless legal or regulatory frameworks require disclosure to authorities. Immediate reporting to law enforcement (option B) may breach confidentiality without proper internal escalation.
* Why Option D is Correct:
* Reporting to governance ensures proper internal actions are taken and protects the integrity of the audit process. It allows the organization to address the issue before external involvement if required.


NEW QUESTION # 69
Which of the following is NOT one of the three general approaches used to control corporate crime?

  • A. Voluntary changes in corporate attitudes and structure
  • B. Strong intervention of the government
  • C. Withdrawal of financial institution funding
  • D. Consumer action to force change

Answer: C

Explanation:
* General Approaches to Control Corporate Crime:
* Common approaches include government intervention, consumer action, and voluntary corporate changes.
* Financial institution funding is not typically listed as a direct control mechanism for corporate crime.
* Analysis of Options:
* B. Government intervention: Effective through regulation and enforcement.
* C. Consumer action: Encourages ethical practices through market pressures.
* D. Voluntary corporate changes: Demonstrates internal commitment to compliance.
* Conclusion:Withdrawal of financial institution funding is not one of the recognized general approaches.
References:ACFE and corporate governance literature on controlling corporate crime.


NEW QUESTION # 70
Which of the following is NOT one of the three general approaches used to control corporate crime?

  • A. Strong intervention of the government
  • B. Voluntary changes in corporate attitudes and structure
  • C. Media blacklisting of the organization
  • D. Consumer action to force change

Answer: B


NEW QUESTION # 71
......

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