Free Access ACFE.CFE-Fraud-Prevention-and-Deterrence.v2022-02-24.q34 Practice Test (Page 4)

Question 11

Which of the following statements is FALSE?

A.Conducting covert audits is among the most effective fraud prevention methods

B.Most experts agree that it is harder to detect frauds than to prevent them

C.Educating employees about company hotlines and reporting programs increases their perception of detection

D.Controls do little good in preventing theft and fraud if those at risk do not know of their presence

Question 12

As part of her audit of ABC Corp . Rachel, a CPA. is identifying the risks of material misstatement due to fraud As part of this task, she should evaluate any unexpected relationships that she identified in performing analytical procedures.

A.False

B.True

Question 13

Which of the following is NOT a way that an organization's fraud risk assessment should be incorporated into the audit process''

A.It should be used to replace the auditor's own identification and assessment of fraud risks.

B.It should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.

C.It should be used to design audit tests to evaluate whether the controls are operating effectively

D.It should be used to assess whether there is a moderate-to-high risk of management override of internal controls within the moderate-to-high fraud risk areas

Question 14

In developing a corporate governance framework for an organization, directors and management must consider which of the following?

A.The organization s ethical environment

B.The organization s cultural environment

C.All of the above

D.The organization s legal and regulatory environment

Question 15

Which of the following statements regarding document retention policies (DRPs) is TRUE?

A.When establishing a document retention policy, management should consider any industry-specific rules for documenting and regaining records

B.An effective document retention policy permits the organization to continue the destruction of documents when faced with potential litigation