CFE-Fraud-Prevention-and-Deterrence Free Practice Test

A report by a fraud examiner is privileged from disclosure by anyone other than the client

1. A. True
2. B. False

Correct Answer: A

The International Organization of Securities Commissions' (IOSCO) Principles for Auditor Oversight states that auditor oversight should involve a regular review process designed to ascertain whether audit firms adhere to quality control policies and procedures.

1. A. True
2. B. False

Correct Answer: A

Effective risk management involves balancing which of the following?

1. A. The organization s internal controls and its financial goals
2. B. The organization s financial reporting model and its risk tolerance
3. C. The organization s regulatory requirements and its available resources
4. D. The organization s risk appetite and its ability to meet its objectives

Correct Answer: C

Which of the following is NOT one of the three general approaches used to control corporate crime?

1. A. Consumer action to force change
2. B. Voluntary changes in corporate attitudes and structure
3. C. Media blacklisting of the organization
4. D. Strong intervention of the government

Correct Answer: B

The theory of differential association is used frequently to explain white-collar criminality Which of the following is NOT one of the assertions or principles of differential association?

1. A. Criminal behavior is learned from other people in a process of communication
2. B. Criminal behavior is learned using the same mechanisms as other learning
3. C. Criminal behavior is acquired through participation with intimate personal groups
4. D. The process of learning criminal behavior Is the same as pure imitation

Correct Answer: C