Smartly Prepare Exam with Free Online CFE-Fraud-Prevention-and-Deterrence Practice Test

We offer the latest CFE-Fraud-Prevention-and-Deterrence practice test designed for free and effective online Certified Fraud Examiner - Fraud Prevention and Deterrence certification preparation. It's a simulation of the real CFE-Fraud-Prevention-and-Deterrence exam experience, built to help you understand the structure, complexity, and topics you'll face on exam day.

Question 1

The objective of anti-fraud controls is to:

Options :

A : Completely eliminate inherent fraud risk.

B : Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.

C : Completely eliminate residual fraud risk

D : Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk

Answer: D

Question 2

Which of the following choices is an example of an anti-fraud control that is primarily preventive in nature?

Options :

A : Continuous audit techniques

B : Proactive data analysis techniques

C : Employee background checks

D : Whistleblower hotline

Answer: C

Question 3

Before buying a capital asset, an organisation should weigh the costs and benefits of the asset. What factors are included in this analysis? Select TWO that apply.

Options :

A : The cumulative cash flows generated by the asset

B : Current liabilities in the balance sheet

C : The cost of the asset

D : Dividends paid

E : Shareholders' equity

Answer: A,C

Question 4

How does writing off obsolete inventories affect a company's financial statements?

Options :

A : Stock increases

B : Stock decreases

C : Profit increases

D : Profit decreases

E : 1 and 3 only

F : 1 and 4 only

G : 2 and 3 only

H : 2 and 4 only

Answer: G

Question 5

Which of the following is NOT a purpose served by a professional organization's code of conduct?

Options :

A : It replaces the need for individuals to consult their own conscience.

B : It facilitates practical enforcement and profession-wide Internal discipline.

C : It serves as a reference and benchmark for ethical guidance

D :

It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles

Answer: A