Ethical Obligations & Professional Conduct Flashcards
7 cards from real CFE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Ethical Obligations & Professional Conduct flashcards as text
A CFE discovers that a colleague has submitted a fraudulent expense report to their employer. What is the CFE's primary ethical obligation?
Answer: Report the misconduct through appropriate channels
CFEs have an ethical duty to report known fraud or misconduct through appropriate internal or external channels rather than ignoring it.
Which of the following best describes the concept of 'professional skepticism' for a CFE?
Answer: Maintaining a questioning mind and critically assessing evidence
Professional skepticism means maintaining a questioning mind and critically evaluating evidence rather than accepting information at face value.
A CFE is offered a percentage of the recovered funds as compensation for a fraud investigation. This arrangement is:
Answer: Prohibited as it creates a conflict of interest
Contingency fees based on investigation outcomes are prohibited because they compromise the CFE's objectivity and independence.
When a CFE is retained by defense counsel in a criminal matter, the CFE's ultimate duty is to:
Answer: Provide objective, truthful findings regardless of who retained them
A CFE's duty to provide objective and truthful findings supersedes any obligation to advocate for the retaining party.
A CFE is asked to backdate a work product document. The appropriate response is to:
Answer: Refuse, as this constitutes falsification of records
Backdating documents is a form of falsification that violates ACFE ethical standards and potentially constitutes fraud itself.
The ACFE Code of Professional Ethics requires members to refrain from which of the following?
Answer: Using information obtained in an engagement to personally benefit
The ACFE code explicitly prohibits using confidential information gained during an engagement for personal gain or benefit.
A CFE who knowingly signs off on a report containing material misstatements is most likely guilty of:
Answer: A breach of professional ethics and potentially fraud
Knowingly certifying false information constitutes a serious breach of professional ethics and may expose the CFE to fraud liability.