ACFE CFE-Fraud-Prevention-and-Deterrence Value Pack (Frequently Bought Together)

Which of the following is TRUE regarding corporate governance?

• A. Fraud risk management is considered to be the foundation of effective corporate governance
• B. Corporate governance ' s primary purpose is to ensure the accuracy of the organization ' s financial reports
• C. Effective corporate governance practices are most necessary in an organization in which the owners are also the individuals responsible for setting the corporate strategy.
• D. An entity ' s corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization

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?

• A. Philosophical principles related to ethics
• B. Guidance from her family and friends
• C. Contract law
• D. The ACFE Code of Professional Ethics

Alicia, a government auditor, is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions. Which of the following is TRUE regarding Alicia's consideration of fraud during this engagement?

• A. In conducting the audit, Alicia's objectives are likely narrower than those of a private-sector financial statement audit.
• B. Alicia should focus on potential fraud and does not need to consider the possibility of abuse or other misconduct during the audit engagement.
• C. Alicia must comply with the requirements found in International Standard on Auditing 240 as they apply to both private- and public-sector audits.
• D. If Alicia identifies fraud during the audit engagement, she must immediately withdraw from the engagement.

A professional organization ' s code of conduct serves which of the following purposes?

• A. A code acts as a substitute for legal and regulatory requirements that apply to the profession.
• B. A code offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.
• C. A code facilitates practical enforcement and internal discipline throughout a profession.
• D. A code provides answers to all ethical dilemmas that the organization ' s members might encounter.

Black, a Certified Fraud Examiner CFE, was hired to conduct a fraud examination. He did not find fraud, but in Black's opinion, the controls he examined were deficient. Under the ACFE Code of Professional Ethics, which of the following is TRUE?

• A. Black may include his opinion on the internal control deficiencies in his report to management only if he amends his engagement letter.
• B. Black is not permitted to express his opinion on the internal control deficiencies in his report to management under any circumstances.
• C. Black may include his opinion on the internal control deficiencies in his report to management because it is a technical matter.
• D. Black may include his opinion on the internal control deficiencies in his report to management only if he gets formal approval from the board of directors.