ACFE CFE-Fraud-Prevention-and-Deterrence Dumps

Conditioning theory

Routine activities theory

Rational choice theory

Social control theory

Serving as the intermediaries between shareholders and management

Acting as guardians of the organization's resources and assets

Directing employees to execute business activities

Assessing the strategy and underlying purpose of management's decisions and actions

Only a small percentage of perpetrators are punished when an organization deals with a fraud case internally.

Most fraud cases are only handled internally and are not referred to law enforcement for prosecution

The primary reason organizations decline to prosecute fraud cases is a belief that their internal discipline methods are sufficient

When fraud cases are handled internally, an employee is more likely to be suspended or put on probation than to be terminated for their crime.

True

False

Communicating the expectations of those governing the fraud risk management program

Performing comprehensive fraud risk assessments to identify specific fraud schemes

Deploying preventive and detective fraud control activities to mitigate fraud risk

Developing one-time evaluations for each fraud risk management principle

Not disclose the information about Green.

Report Green to law enforcement

Tell the company's board of directors about Green.

Resign from the engagement

True

False

Corporate compliance

Fraud risk management

Risk assessment

Internal control

Susannah should confront management with her audit findings and try to get a confession.

Susannah should Immediately report her findings to the secunties regulators

Susannah should report her findings to the audit committee of the board of directors.

Susannah should not disclose her findings to any other parties due to client confidentiality.

The program must include mechanisms to monitor and identify breaches in compliance.

The responsibility of handling suspected incidents of noncompliance should be delegated to someone outside of the company.

Formal sanctions for intentional noncompliance should be well-publicized throughout the company

There should be measures in place to address failures in the design or operation of anti-fraud controls, as well as fraud occurrences

Rationalization

Lack of integrity

Opportunity

Pressure

The company should communicate that fraud, waste, and abuse are more likely to occur in large organizations than small ones.

The company should require employees with information about potential fraud to report it directly and only to their immediate supervisor.

Employees are held accountable for reporting tips that are not able to be substantiated

Employees should be informed that, to the extent possible, their names will not be disclosed.

Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.

Publicly call out and criticize employees whose cash drawers are over or short.

Take away an hour of paid time off for each time the drawer is over or short

Demote employees who continue to have reconciliation discrepancies

The objective of the assessment is to help the organization identify what makes it most vulnerable to fraud.

The assessment should be used to improve employee fraud awareness

The assessment team should consider how employees behave as part of its assessment

The designation of an area as high risk should only occur if the assessment has conclusively revealed that fraud is occurring there.

True

False

XYZ only needs to undertake due diligence procedures if ABC conducts business in countries with known corruption risks.

XYZ does not need to take any specific procedures to verify ABC's identity before accepting the transaction

XYZ should examine ABC's net worth as part of deciding whether to allow the purchase on credit.

XYZ should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination

Professional skepticism means beginning all assignments with the belief that something is amiss.

Professional skepticism involves maintaining a mindset that no fraud has occurred

Fraud examiners should form the engagement hypothesis without regard to the available preliminary information.

Fraud examiners should not relax their skeptical attitudes under any circumstances.

increase in the occurrence of the undesired behavior

No effect on the occurrence of the undesired behavior

Temporary suppression of the undesired behavior

Permanent suppression of the undesired behavior

In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.

The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.

The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement

The objectives of the audit are likely narrower than those of a private-sector financial statement audit.

A detailed anti-fraud policy can make it easier to investigate and punish employees who commit fraud and other dishonest acts.

To avoid legal problems in discharging employees, the anti-fraud policy should not include any specific examples of frau and misconduct.

In developing the anti-fraud policy, management should check with legal counsel regarding any legal considerations with respect to the policy.

One of the most important considerations in developing the anti-fraud policy is to ensure every allegation is handled in a uniform manner.

High personal debt; lack of separation of duties

Revenge: too much trust in key employees

Living beyond their means, too much trust in key employees

Desire for recognition, lack of separation of duties