CFE - Fraud Prevention

CFE - Fraud Prevention practice questions, page 8 of 11, with answer review and explanations.

Question 36

Which of the following statements regarding best practices that organizations can take to protect and support whistleblowers is MOST ACCURATE?

  1. Organizations should emphasize that rules regarding whistleblower protections are only intended for lower level employees who might be more vulnerable to retaliation
  2. Organizations should establish formal consequences that are to be imposed upon employees at the company who retaliate against a whistleblower
  3. Organizations should publicize their whistleblower procedures internally but should avoid communicating any procedural information to parties outside of the organization.
  4. Organizations should implement a clear whistleblower policy that lists out every type of misconduct that has ever been reported at the company

Question 37

The availability of suitable targets, absence of capable guardians such as auditors and security personnel, and presence of motivated offenders are the three most important elements that influence crime according to which of the following criminological theories?

  1. Routine activities theory
  2. Conditioning theory
  3. Rational choice theory
  4. Social control theory

Question 38

During an admission-seeking interview, Smith, an accounts payable clerk, admits to stealing company funds. Jones, the Certified Fraud Examiner (CFE) investigating the case, may refer to Smith as “guilty” in his fraud examination report.

  1. True
  2. False

Question 39

The findings in the 2020 Report to the Nations include which of the following?

  1. The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is complaints about management
  2. The majority of fraudsters have been previously punished by an employer for a fraud-related offense
  3. More occupational frauds are committed by men than by women
  4. The median losses caused by executives are lower than those caused by staff-level employees

Question 40

Employees should be made aware that management is watching for lifestyle and behavior changes in staff members that might indicate fraud.

  1. True
  2. False