ACFE Fraud Prevention & Deterrence 5

Question 1

Which internal control activity is the MOST fundamental for preventing asset misappropriation?

Accepted Answer

Segregation of duties

Answer

Segregation of duties ensures no single employee controls all aspects of a transaction, making it much harder to commit and conceal asset misappropriation.

Question 2

Why is it important for organizations to publicize disciplinary actions taken against fraud perpetrators?

Accepted Answer

To reinforce deterrence by demonstrating real consequences

Answer

Publishing outcomes (appropriately and lawfully) demonstrates that fraud has real consequences, strengthening the deterrent effect on other employees.

Question 3

An employee is caught submitting personal expenses on a company credit card. The manager quietly returns the money and takes no further action. What fraud prevention principle does this violate?

Accepted Answer

The principle of consistent and transparent enforcement

Answer

Handling fraud quietly without formal action violates consistent enforcement, which is essential for maintaining credible deterrence and fairness.

Question 4

What is the primary goal of a fraud awareness training program?

Accepted Answer

To help employees recognize red flags and understand reporting channels

Answer

Fraud awareness training helps employees spot warning signs of fraud and know how and where to report suspicions, increasing the likelihood of early detection.

Question 5

Which situation represents a classic 'opportunity' factor that enables occupational fraud?

Accepted Answer

A single employee both approves and processes vendor payments

Answer

When one employee both approves and processes payments, they have unchecked access and control, creating a clear opportunity to commit and conceal fraud.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Fraud Prevention & Deterrence 5