Free Access ACFE.CFE-Fraud-Prevention-and-Deterrence.v2025-05-22.q80 Practice Test (Page 11)

Question 46

A corporation can generally be held criminally responsible for criminal acts committed by its employees even if those in management had no knowledge of or participation in the underlying events.

A.True

B.False

Question 47

Susannah Is conducting an external audit of a company In a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking her audit procedures, she discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Susannah's BEST response to these findings?

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

B.Susannah should Immediately report her findings to the secunties regulators

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

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

Question 48

Which of the following is FALSE regarding an organization's anti-fraud policy?

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

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

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

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

Question 49

Which of the following Is NOT Included In Ihe five fraud risk management principles described In Fraud Risk Management Guide, a joint publication by COSO and the ACFE?

A.Deploying preventive and detective fraud control activities to mitigate fraud risk

B.Communicating the expectations of those governing the fraud risk management program

C.Performing comprehensive fraud risk assessments to identify specific fraud schemes

D.Developing one-time evaluations for each fraud risk management principle

Question 50

Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.