CFE - Fraud Prevention

CFE - Fraud Prevention practice questions, page 6 of 11, with answer review and explanations.

Question 26

Which of the following statements is FALSE regarding an organization's fraud risk management program?

  1. A specific individual or team should be designated as responsible for monitoring compliance with the program
  2. Formal sanctions for intentional noncompliance should be determined and enacted privately
  3. The punishment for intentional noncompliance should be carried out in a consistent and firm manner
  4. The program must include mechanisms to address breaches in compliance

Question 27

The objective of anti-fraud controls is to:

  1. Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk
  2. Completely eliminate inherent fraud risk
  3. Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk
  4. Completely eliminate residual fraud risk

Question 28

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?

  1. Criminal behavior is learned using the same mechanisms as other learning
  2. Criminal behavior is acquired through participation with intimate personal groups
  3. Criminal behavior is learned from other people in a process of communication
  4. The process of learning criminal behavior is the same as pure imitation

Question 29

Jody has been working at ABC Corp. for ten years. He steals funds from the company and tells himself that the company owes it to him for his “unrewarded hard work and loyalty.” This situation best illustrates which leg of the Fraud Triangle?

  1. Lack of personal integrity
  2. Rationalization
  3. Perceived non-shareable financial need
  4. Perceived opportunity

Question 30

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

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