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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q37-Q42):

NEW QUESTION # 37
Which of the following is TRUE regarding corporate governance?

Answer: B

Explanation:
Definition of Corporate Governance:
Corporate governance establishes the framework for decision-making and accountability within an organization. It includes roles, rights, and responsibilities of stakeholders such as the board, management, and shareholders.
Why D is Correct:
The governance structure formalizes the distribution of roles and ensures clarity in accountability and oversight.


NEW QUESTION # 38
ArtisanWare, Inc. is a retailer of high-end kitchen supplies. The company receives a very large order from EFG Company, a new customer in a different country that wants to pay on credit.
Which of the following is MOST ACCURATE regarding the due diligence procedures that ArtisanWare should perform on EFG before proceeding with this transaction?

Answer: D


NEW QUESTION # 39
Which of the following Is one of the recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

Answer: C

Explanation:
Treadway Commission Recommendations:
Establishing an independent audit committee is essential for oversight and reducing fraud risk in financial reporting.
Audit committees play a critical role in ensuring the integrity of financial statements.


NEW QUESTION # 40
According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO).________Is "a process. effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance."

Answer: B

Explanation:
COSO defines internal control as a process enacted by an entity's board, management, and personnel to provide reasonable assurance regarding objectives in operations, reporting, and compliance.


NEW QUESTION # 41
Which of the following is a TRUE statement regarding the role of a well-designed organizational structure within an anti-fraud program?

Answer: B


NEW QUESTION # 42
......

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