CFE - Fraud Prevention

CFE - Fraud Prevention practice questions, page 9 of 11, with answer review and explanations.

Question 41

Which of the following is among the board of directors’ primary responsibilities related to fraud risk management?

  1. Implementing the fraud risk management program
  2. Overseeing the organization’s fraud risk management activities
  3. Designing the fraud risk management program
  4. Punishing fraud perpetrators discovered through fraud risk management activities

Question 42

Which of the following is FALSE regarding the fraud risk assessment team?

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

Question 43

Which of the following is a best practice to ensure a successful fraud reporting program?

  1. Employees should be informed that, to the extent possible, their names will not be disclosed
  2. The company should communicate that fraud, waste, and abuse are more likely to occur in large organizations than small ones
  3. Employees are held accountable for reporting tips that are not able to be substantiated
  4. The company should require employees with information about potential fraud to report it directly and only to their immediate supervisor

Question 44

If a Certified Fraud Examiner (CFE) engaged in an illegal activity but did not know at the time that the activity was illegal, Article II of the ACFE Code of Professional Ethics will protect the fraud examiner from legal liability.

  1. True
  2. False

Question 45

According to International Organization for Standardization (ISO) 31000:2018, an organization’s risk management program should be proportionate to the organization’s specific operations and objectives.

  1. True
  2. False