CFE Ethical Obligations & Professional Conduct 3

Question 1

A CFE discovers that a colleague has submitted a fraudulent expense report to their employer. What is the CFE's primary ethical obligation?

Accepted Answer

Report the misconduct through appropriate channels

Answer

CFEs have an ethical duty to report known fraud or misconduct through appropriate internal or external channels rather than ignoring it.

Question 2

Which of the following best describes the concept of 'professional skepticism' for a CFE?

Accepted Answer

Maintaining a questioning mind and critically assessing evidence

Answer

Professional skepticism means maintaining a questioning mind and critically evaluating evidence rather than accepting information at face value.

Question 3

A CFE is offered a percentage of the recovered funds as compensation for a fraud investigation. This arrangement is:

Accepted Answer

Prohibited as it creates a conflict of interest

Answer

Contingency fees based on investigation outcomes are prohibited because they compromise the CFE's objectivity and independence.

Question 4

When a CFE is retained by defense counsel in a criminal matter, the CFE's ultimate duty is to:

Accepted Answer

Provide objective, truthful findings regardless of who retained them

Answer

A CFE's duty to provide objective and truthful findings supersedes any obligation to advocate for the retaining party.

Question 5

A CFE is asked to backdate a work product document. The appropriate response is to:

Accepted Answer

Refuse, as this constitutes falsification of records

Answer

Backdating documents is a form of falsification that violates ACFE ethical standards and potentially constitutes fraud itself.

(CFE) Certified Forensic Examiner Practice Test