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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q34-Q39):

NEW QUESTION # 34
Which of the following is NOT a purpose served by a professional organization s code of conduct?

A. It serves as a reference and benchmark for ethical guidance
B. It provides clear answers to all ethical dilemmas the organization s members might face
C. It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles
D. It facilitates practical enforcement and profession-wide internal discipline

Answer: A

NEW QUESTION # 35
A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?

A. The objectives of the audit are likely narrower than those of a private-sector financial statement audit.
B. In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.
C. The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.
D. The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement

Answer: B

Explanation:
ISSAI Standards:
* The International Standards of Supreme Audit Institutions (ISSAI) require government auditors to consider fraud and abuse during financial audits. Abuse includes improper use of authority or resources, which may not always meet the legal threshold of fraud but still warrants attention.
Expanded Audit Scope:
* Unlike private-sector audits, public-sector audits often have broader objectives, requiring vigilance for misuse of public funds and resources.
Why A is Correct:
* Staying alert to abuse ensures comprehensive accountability, aligning with ISSAI's objectives.

NEW QUESTION # 36
Gian is a manager at Ram Co. and is tasked with building the company's fraud risk management program. As a starting point, Gian wants to formally define the program's objectives. Which of the following is TRUE regarding the process of defining the objectives of the fraud risk management program?

A. Gian should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented them.
B. Gian must assign both a quantitative and qualitative measure to the company's risk appetite to accurately measure the program's effectiveness.
C. When expressing the organization's risk appetite, Gian should do so without regard to the company's culture or operations.
D. Gian must ensure that the company's investment in the fraud risk management program outweighs the benefit of those controls.

Answer: A

NEW QUESTION # 37
Which of the following is FALSE regarding the fraud risk assessment team?

A. The team size should be limited to a maximum of three individuals.
B. The team members might include both internal and external sources
C. The team should consist of individuals with diverse knowledge, skills, and perspectives.
D. The team members should have experience in gathering and eliciting information

Answer: A

NEW QUESTION # 38
In developing a corporate governance framework for an organization, directors and management must consider which of the following?

A. All of the above
B. The organization s legal and regulatory environment
C. The organization s cultural environment
D. The organization s ethical environment

Answer: A

NEW QUESTION # 39
......

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