ACFE Fraud Prevention & Deterrence 4

Question 1

According to the ACFE, how does organizational size typically affect fraud losses?

Accepted Answer

Smaller organizations tend to suffer larger median losses relative to revenue

Answer

Smaller organizations tend to have weaker internal controls and thus suffer proportionally larger losses relative to their size, even though total dollar losses may be smaller.

Question 2

Which fraud prevention measure specifically targets the 'pressure' element of the fraud triangle?

Accepted Answer

Employee assistance programs (EAPs)

Answer

Employee assistance programs address financial, personal, or addiction pressures that may drive employees to commit fraud, directly targeting the pressure element.

Question 3

A vendor master file review is BEST described as which type of anti-fraud control?

Accepted Answer

Detective

Answer

Reviewing the vendor master file helps detect fictitious vendors, duplicate entries, or unauthorized changes that may indicate accounts payable fraud after the fact.

Question 4

The 'diamond model' of fraud extends the fraud triangle by adding which fourth element?

Accepted Answer

Capability

Answer

David Wolfe and Dana Hermanson added 'capability'—the fraudster's skills, position, and ability to execute and conceal fraud—as a fourth element to the diamond model.

Question 5

Which governance structure is MOST effective at overseeing fraud risk management?

Accepted Answer

An audit committee composed of independent directors

Answer

An independent audit committee provides objective oversight of fraud risk because its members are not part of management and have no operational conflicts of interest.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Fraud Prevention & Deterrence 4