ACFE Fraud Prevention & Deterrence 3

Question 1

What is the main advantage of a confidential employee hotline compared to open-door reporting policies?

Accepted Answer

It encourages reporting by reducing fear of retaliation

Answer

Confidential hotlines encourage reporting because employees fear less retaliation when their identity is protected, leading to more tips being submitted.

Question 2

According to ACFE guidance, which department should ideally own and oversee the fraud risk management program?

Accepted Answer

Board of directors and senior management

Answer

The board of directors and senior management bear ultimate responsibility for the fraud risk management program, as governance starts at the top.

Question 3

Which scenario BEST illustrates the rationalization element of the fraud triangle?

Accepted Answer

An employee believes the company underpays and they deserve more

Answer

Rationalization occurs when a person justifies their fraudulent behavior with a belief such as 'I deserve this' or 'the company owes me.'

Question 4

Pre-employment screening is MOST effective at preventing fraud when it includes which element?

Accepted Answer

Verification of references and credentials

Answer

Verifying references and credentials helps confirm honesty, qualifications, and past behavior, which are strong indicators of future integrity.

Question 5

What is 'proactive data analysis' in the context of fraud deterrence?

Accepted Answer

Continuously monitoring transactions to detect anomalies before losses escalate

Answer

Proactive data analysis involves continuously reviewing transaction data for red flags and anomalies to catch potential fraud early, before significant losses occur.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Fraud Prevention & Deterrence 3