ACFE Certification Exams Pack
Everything from Basic, plus:
- Exam Name: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam
- 330 Questions Answers with Explanation Detail
- Total Questions: 330 Q&A's
- Single Choice Questions: 330 Q&A's
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ACFE CFE-Fraud-Prevention-and-Deterrence - Certified Fraud Examiner - Fraud Prevention and Deterrence Exam
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Total Questions: 330
Free Practice Questions: 99
During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization ' s reported revenue amount However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?
Answer
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A
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Explanation
Implications of Management Manipulation: Intentional manipulation, even if quantitatively immaterial, raises concerns about the reliability of management representations and the integrity of audit evidence. Why Option A is Correct: Reassessing the reliability of previously obtained evidence ensures that the auditors address potential biases or systemic issues arising from management ' s actions. Analysis of Other Options: B. Withdrawing from the audit:Premature unless the issue is pervasive. C. Legal definition of fraud:Auditors are not required to meet this threshold for assessing evidence. D. Quantitative materiality:Misstatements can be qualitatively material if they indicate intentional manipulation. Conclusion:The auditors must reconsider the reliability of evidence due to the qualitative implications of management ' s actions. [References:Auditing standards and ACFE guidance on assessing audit evidence reliability., , , , , , ]
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Green, a Certified Fraud Examiner (CFE). had an ethical dilemma regarding her business contract with her professional partners. Which of the following sources of guidance would be considered the lowest level of reference to help Green in determining the most ethical course of action?
Answer
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B
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Explanation
Hierarchy of Ethical Guidance Sources: A. Contract law:Provides legal guidance on business agreements. C. ACFE Code of Professional Ethics:Offers specific ethical standards for fraud examiners. D. Philosophical principles:Offer foundational guidance on ethics. B. Family and friends:While valuable for personal advice, they are the lowest reference point in determining professional ethics. Conclusion:Guidance from family and friends is the lowest level of reference for determining ethical actions. [References:ACFE standards on ethical decision-making., , , , , , ]
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Christopher is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing ISAs. While conducting his audit procedures, he discovers evidence of a fraud involving Jeffrey, the company’s chief executive officer. Which of the following is Christopher’s BEST response to these findings?
Answer
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C
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Explanation
Under ISA 240, as summarized in the Auditors’ Fraud-Related Responsibilities chapter, if the auditor identifies or suspects fraud involving management, the auditor must communicate those suspicions to those charged with governance and discuss the nature, timing, and extent of audit procedures necessary to complete the audit. The manual also states that when fraud involving management or persons with significant internal control roles is identified, the auditor shall communicate these matters to those charged with governance on a timely basis. Reporting outside the entity may be required in some circumstances, but the auditor must first determine whether such a responsibility exists because confidentiality duties can apply. Therefore, the best immediate response in this scenario is to report the findings to those charged with governance. |
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ACFE CFE-Fraud-Prevention-and-Deterrence FAQ'S
Find answers to the most common questions about the ACFE CFE-Fraud-Prevention-and-Deterrence exam, including what it is, how to prepare, and how it can boost your career.
The ACFE CFE-Fraud-Prevention-and-Deterrence certification is a globally-acknowledged credential that is awarded to candidates who pass this certification exam by obtaining the required passing score. This credential attests and validates the candidates' knowledge and hands-on skills in domains covered in the ACFE CFE-Fraud-Prevention-and-Deterrence certification syllabus. The ACFE CFE-Fraud-Prevention-and-Deterrence certified professionals with their verified proficiency and expertise are trusted and welcomed by hiring managers all over the world to perform leading roles in organizations. The success in ACFE CFE-Fraud-Prevention-and-Deterrence certification exam can be ensured only with a combination of clear knowledge on all exam domains and securing the required practical training. Like any other credential, ACFE CFE-Fraud-Prevention-and-Deterrence certification may require periodic renewal to stay current with new innovations in the concerned domains.
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