New Release CFE-Fraud-Prevention-and-Deterrence Certified Fraud Examiner Questions

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Question 12

An effective system of anti-fraud controls

Options:

Fully eliminates the risk of fraud

Focuses more on detective controls than preventive controls

Focuses more on preventive controls than detective controls

Increases the perception that fraud will be detected

Question 13

According to the 2020 Report to the Nations, which of the following is the MOST COMMON method by which frauds are detected?

Options:

Internal audit

Confession

Tips

External audit

Question 14

Which of the following is TRUE regarding proactive fraud auditing procedures?

Options:

Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods.

Fraud assessment Questioning techniques are most appropriately used when attempting to determine who might be responsible for a particular fraud scheme.

Implementing proactive fraud audit procedures demonstrates the organization's intention to aggressively look for possible fraudulent conduct.

Surprise audit procedures are an effective fraud detection mechanism, but they do not help prevent fraud

Question 15

International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the establishment of anti-fraud internal controls within an organization.