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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q98-Q103):

NEW QUESTION # 98
Christopher is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing ISAs. While conducting his audit procedures, he discovers evidence of a fraud involving Jeffrey, the company's chief executive officer. Which of the following is Christopher's BEST response to these findings?

A. Christopher should not disclose his findings to any other parties due to legal liability.
B. Christopher should immediately report his findings to the relevant government authority.
C. Christopher should report his findings to those charged with governance of the organization.
D. Christopher should confront Jeffrey with his audit findings and try to get a confession.

Answer: C

Explanation:
Under ISA 240, as summarized in the Auditors' Fraud-Related Responsibilities chapter, if the auditor identifies or suspects fraud involving management, the auditor must communicate those suspicions to those charged with governance and discuss the nature, timing, and extent of audit procedures necessary to complete the audit. The manual also states that when fraud involving management or persons with significant internal control roles is identified, the auditor shall communicate these matters to those charged with governance on a timely basis. Reporting outside the entity may be required in some circumstances, but the auditor must first determine whether such a responsibility exists because confidentiality duties can apply. Therefore, the best immediate response in this scenario is to report the findings to those charged with governance.

NEW QUESTION # 99
In Ihe context of fraud examination, integrity requires all of the following EXCEPT:

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

Answer: C

Explanation:
Integrity in Fraud Examination:
Integrity involves critical thinking, independence, and prioritizing ethical principles over personal gain.
Healthy debate and differences of opinion are integral to maintaining objectivity.
Why Option D is Incorrect:
Avoiding differences of opinion contradicts the need for professional skepticism and robust analysis in fraud examination.
Conclusion:Integrity does not require the avoidance of differences of opinion, making D the correct answer.
References:ACFE Code of Professional Ethics and fraud examination standards.

NEW QUESTION # 100
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. False
B. True

Answer: B

NEW QUESTION # 101
Employee anti-fraud education should:

A. Include descriptions of the procedures that management uses to detect fraud.
B. Be restricted to formal educational mechanisms to reinforce the importance of the message
C. Include examples of prior employee misconduct and how those situations were handled
D. Be presented by organizational executives or anti-fraud professionals only

Answer: C

NEW QUESTION # 102
In the context of fraud examination, integrity requires all of the following EXCEPT:

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

Answer: C

NEW QUESTION # 103
......

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