Fraud Prevention and Deterrence Practice Test

CFE-FP-D Exam Format | Course Contents | Course Outline | Exam Syllabus | Exam Objectives

Exam Detail:
The CFE-FP-D (Certified Fraud Examiner - Fraud Prevention and Deterrence) exam is a professional certification exam offered by the Association of Certified Fraud Examiners (ACFE). It is designed to assess the knowledge and skills of individuals involved in fraud prevention and deterrence. Here are the exam details for the CFE-FP-D exam:

- Number of Questions: The exam typically consists of 150 multiple-choice questions.

- Time Limit: The time allocated to complete the exam is 4 hours.

Course Outline:
The CFE-FP-D course provides a comprehensive understanding of various topics related to fraud prevention and deterrence. The course outline generally includes the following areas:

1. Introduction to Fraud:
- Understanding fraud and its impact on organizations.
- Fraud prevention and deterrence principles.

2. Fraud Risk Assessment and Management:
- Identifying fraud risks and vulnerabilities.
- Conducting fraud risk assessments.
- Implementing fraud prevention controls.

3. Fraud Detection and Investigation Techniques:
- Recognizing red flags and indicators of fraud.
- Conducting internal investigations.
- Gathering evidence and interviewing techniques.

4. Fraud Prevention Policies and Procedures:
- Developing and implementing fraud prevention policies and procedures.
- Internal controls and segregation of duties.
- Fraud prevention training and awareness programs.

5. Fraud Prevention in Specific Industries:
- Fraud prevention considerations in different industries, such as banking, insurance, healthcare, and government.
- Industry-specific regulations and compliance requirements.

6. Ethics and Professionalism:
- Ethical standards for fraud prevention professionals.
- Professional responsibilities and code of conduct.
- Reporting fraud and whistleblower protection.

Exam Objectives:
The objectives of the CFE-FP-D exam are as follows:

- Assessing candidates' knowledge of fraud prevention and deterrence principles and techniques.
- Evaluating candidates' understanding of fraud risk assessment and management.
- Testing candidates' proficiency in fraud detection and investigation techniques.
- Assessing candidates' knowledge of developing and implementing fraud prevention policies and procedures.
- Evaluating candidates' understanding of ethics and professionalism in fraud prevention.

Exam Syllabus:
The specific exam syllabus for the CFE-FP-D exam covers the following topics:

1. Introduction to Fraud Prevention and Deterrence:
- Fraud prevention principles and concepts.
- Fraud prevention frameworks and methodologies.

2. Fraud Risk Assessment and Management:
- Fraud risk identification and assessment.
- Fraud risk management strategies.
- Fraud prevention controls and mitigation measures.

3. Fraud Detection and Investigation Techniques:
- Fraud detection methods and techniques.
- Internal investigations and evidence gathering.
- Interviewing and interrogation techniques.

4. Fraud Prevention Policies and Procedures:
- Fraud prevention policy development and implementation.
- Internal controls and segregation of duties.
- Fraud prevention training and awareness programs.

5. Fraud Prevention in Specific Industries:
- Industry-specific fraud risks and prevention measures.
- Compliance requirements and regulations in different industries.

6. Ethics and Professionalism in Fraud Prevention:
- Ethical standards for fraud prevention professionals.
- Professional responsibilities and code of conduct.
- Reporting fraud and whistleblower protection.

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CFE-FP-D
Fraud Prevention and Deterrence
https://killexams.com/pass4sure/exam-detail/CFE-FP-D
Question: 27
Professional auditing standards suggest that auditors incorporate an "element of predictability" in the selection of
auditing procedures to be performed so that they ensure the same areas are tested in the same manner during each
audit.
A . True
B . False
Answer: A
Question: 28
Management at ABC Corp. is assessing the company s ethical tone and how it affects the organization s fraud risk. To
most effectively reinforce an anti-fraud culture, management should
A . Create an environment in which employees feel safe challenging managements decisions
B . Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
C . Implement two separate sets of ethics policies one for management and one for employees
D . All of the above
Answer: D
Question: 29
According to G20/OECD Principles of Corporate Governance (the Principles):
A . Governments should have in place a corporate governance framework that promotes transparent and fair markets
B . Companies should disclose all financial information to investors, regardless of the cost burden of the disclosure
C . A corporate governance framework should focus on the rights of shareholders but does not need to include the
rights of other organizational stakeholders
D . All of the above
Answer: A
Question: 30
White, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination. She did not find fraud, but. in
White’s opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence
of fraud. Under the ACFE Code of Professional Ethics. White may include her opinion on the controls in her report to
management
A . True
B . False
Answer: A
Question: 31
Which of the following statements is FALSE regarding an organization’s fraud risk management program1?
A . A Formal sanctions for intentional noncompliance should be well-publicized throughout the company
B . There should be measures in place to address failures in the design or operation of anti-fraud controls, as well as
fraud occurrervces
C . The program must include mechanisms to monitor and identify breaches in compliance
D . The responsibility of handling suspected incidences of noncompliance should be delegated to someone outside of
the company
Answer: A
Question: 32
The Public Interest Oversight Board (PIOB) is the global body responsible for establishing international corporate
governance standards.
A . True
B . False
Answer: B
Question: 33
Which of the following is FALSE regarding corporate governance’
A . Effective corporate governance practices are most necessary in an organization in which the owners are not also
the individuals responsible for setting and executing the business strategy
B . Effective corporate governance practices are considered to be the foundation of fraud risk management.
C . Corporate governances primary purpose is to ensure the accuracy of the organizations financial reports
D . An entity’s corporate governance structure specifies the distribution of rights and responsibilities among the
different participants in the organization
Answer: A
Question: 34
Which of the following is FALSE regarding corporate governance’
A . Effective corporate governance practices are most necessary in an organization in which the owners are not also
the individuals responsible for setting and executing the business strategy
B . Effective corporate governance practices are considered to be the foundation of fraud risk management.
C . Corporate governances primary purpose is to ensure the accuracy of the organization’s financial reports
D . An entity’s corporate governance structure specifies the distribution of rights and responsibilities among the
different participants in the organization.
Answer: D
Question: 35
Julia is conducting a formal assessment of XYZ Corporation s ethical culture To which of the five components of the
Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Internal Control-Integrated
Framework (the Framework) does her assessment pertain?
A . Control environment
B . Monitoring
C . Control activities
D . Information and communication
Answer: A

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