ACFE Fraud Risk Assessment 4

Question 1

Which type of fraud scheme is most directly mitigated by implementing a mandatory vacation policy for employees in sensitive positions?

Accepted Answer

Skimming and lapping schemes

Answer

Mandatory vacations force others to cover an employee's duties, which can expose ongoing skimming or lapping schemes that require constant maintenance.

Question 2

During a fraud risk assessment, which of the following would be considered an 'anti-fraud control' rather than a fraud risk?

Accepted Answer

Mandatory ethics training for all employees

Answer

Mandatory ethics training is an anti-fraud control designed to reduce rationalization and deter fraudulent behavior, not a risk factor.

Question 3

An organization wants to assess fraud risks in its procurement process. Which approach provides the most direct insight into potential fraud schemes?

Accepted Answer

Mapping procurement process flows to identify control gaps and scheme opportunities

Answer

Process mapping identifies where assets change hands and where controls may be absent, directly revealing where fraud schemes could occur.

Question 4

The ACFE's Fraud Risk Management Guide recommends that fraud risk assessments be conducted by whom?

Accepted Answer

A cross-functional team that includes management, internal audit, legal, and compliance

Answer

The ACFE guide recommends a multidisciplinary team to capture diverse perspectives on fraud risks across all organizational functions.

Question 5

When assessing fraud risk related to financial reporting, which of the following revenue recognition scenarios represents the highest fraud risk?

Accepted Answer

Revenue from long-term contracts recognized using percentage-of-completion estimates

Answer

Percentage-of-completion accounting requires significant management estimates, creating opportunity to manipulate reported revenue and earnings.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Fraud Risk Assessment 4