ACFE Fraud Risk Assessment 3

Question 1

Which of the following is the primary purpose of benchmarking during a fraud risk assessment?

Accepted Answer

To compare an organization's fraud controls against peer organizations or best practices

Answer

Benchmarking in fraud risk assessment involves comparing an organization's controls and risk posture against industry peers or established best practices to identify gaps.

Question 2

An organization's fraud risk assessment reveals a high-likelihood, low-impact risk. The most appropriate management response is typically to:

Accepted Answer

Implement cost-effective controls to reduce likelihood

Answer

High-likelihood, low-impact risks are best addressed by implementing controls that reduce how often the fraud could occur.

Question 3

Which of the following scenarios most clearly illustrates 'collusion risk' in a fraud risk assessment?

Accepted Answer

Two employees who agree to circumvent segregation of duties controls together

Answer

Collusion risk arises when two or more individuals work together to bypass controls that would prevent fraud by a single person.

Question 4

In the context of fraud risk assessment, 'tone at the top' is evaluated primarily because it affects which fraud triangle element?

Accepted Answer

All three elements

Answer

A poor tone at the top can create pressure through unrealistic expectations, opportunities through weak oversight, and rationalization through modeling unethical behavior.

Question 5

When using data analytics as part of a fraud risk assessment, what is the primary goal?

Accepted Answer

To identify anomalies and patterns that may indicate fraud risk exposure

Answer

Data analytics in fraud risk assessment is used to surface anomalies, outliers, and unusual patterns that signal areas of elevated fraud risk.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Fraud Risk Assessment 3