Pass the ACFE Certified Fraud Examiner CFE-Fraud-Prevention-and-Deterrence Questions and answers with ExamsMirror

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A fraud examiner's report is considered privileged information and is therefore protected from being legally demanded by outside parties.

A fraud examiner's report may be privileged from disclosure in certain circumstances, but it does not have an absolute legal privilege.

A fraud examiner's report is privileged from disclosure by anyone other than the client.

A fraud examiner's report is only privileged from disclosure if the author is also a professional legal advisor.

Grace, a CFE, uncovered internal control deficiencies that were material but unrelated to the financial statement fraud she was investigating. In her final report to management, Grace included information about the deficiencies despite their being unrelated to the situation she was hired to investigate.

Eric, a CFE, accepted a fraud examination assignment and then instructed his employee to assess the company’s accounts receivable for indications of fraud. He accepted the employee’s work that showed no evidence of fraud without conducting his own assessment. However, the employee missed some key information, causing Eric to fail to uncover a costly fraud scheme.

Mae, a CFE, was hired by a client to conduct a fraud examination but found nothing unusual. A year later, she received a legal order from the local prosecutor's office to provide the client’s file. Mae complied with the court order despite not having the client's authorization to provide the file.

All of the above are violations.

Team members should all have similar skills and perspectives.

The size of the team should be limited to four individuals.

The team should include only external sources.

Team members should have experience in eliciting information.

Overseeing the organization's fraud risk management activities

Designing the fraud risk management program

Punishing fraud perpetrators discovered through fraud risk management activities

Implementing the fraud risk management program

Men commit significantly more frauds than women do.

Most fraudsters have previous criminal convictions for fraud-related offenses.

An unwillingness to share duties is the most reported red flag displayed by fraud perpetrators prior to the detection of their crime.

Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.

Employees should be made aware that management is watching for unexplained lifestyle and behavioral changes that might indicate fraudulent conduct.

An increase in employee wealth is always a sign of fraud that should be investigated.

Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.

Managers should be instructed that it is a violation of employee privacy rights to monitor employees for behaviors that are indicative of fraud.

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Provide adequate resources and authority to the internal audit function.

Have a mandatory independent finance committee.

Assign oversight of the hotline reporting program to company shareholders.

Develop a written charter for the audit committee.

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

Fraud audit procedures should be designed to avoid an element of surprise.

Auditors should avoid asking questions such as, "Has anyone ever asked you to do something unethical?" as part of their audits, as this can limit employees' willingness to communicate.

Fraud assessment questioning techniques are most effectively used as part of the normal audit process.