Question 1

Employee anti-fraud education should:

Options :

A : Include descriptions of the procedures that management uses to detect fraud.

B : Include examples of prior employee misconduct and how those situations were handled.

C : Be restricted to formal educational mechanisms to reinforce the importance of the message.

D : Be presented by organizational executives or anti-fraud professionals only.

Answer: B

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

In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss. This response is known as:

Options :

A : Assuming the risk

B : Mitigating the risk

C : Avoiding the risk

D : Transferring the risk

Answer: D

Question 4

To plan for strategic safety stock, a manufacturer needs to estimate the likelihood and the consequences of running out of stock. What are some common costs that a manufacturer might face in a stock out situation? Select TWO that apply.

Options :

A : Extra costs for urgent transportation

B : Costs of handling inventory

C : Costs of approving the requisition

D : Cost of equipment downtime

E : Costs for qualifying suppliers

Answer: A,D

Question 5

Which of the following best defines ‘exponential moving average’?

Options :

A :

A process by which the reorder of an item is triggered by the inventory level dropping to a predetermined level

B :

A forecasting technique where the average is calculated by dividing the sum of the values by the number of values

C : A forecasting technique where each demand is multiplied by a weighting factor

D :

A process by which a decision is taken at a period end or review point to determine how much to reorder

Answer: C

Free CFE-Fraud-Prevention-and-Deterrence Mock Exam – Practice Online Confidently

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