Pass with professional CFE-Fraud-Prevention-and-Deterrence actual quiz materials

Which of the following scenarios is a representation of organizational crime?

• A. A commercial director agrees with other businesses in the same industry to raise prices.
• B. An inventory manager takes home the company's products to sell privately.
• C. A senior accountant uses company funds to pay for personal credit card charges.
• D. A retail manager works with a friend to commit a scheme involving fraudulent product returns.

During a fraud examination, Lark, an employee of ABC Corp., approaches Wren, a Certified Fraud Examiner (CFE) who also works for the company. Lark tells Wren that she wants to provide information about a potential fraud, but the information must be kept confidential. How should Wren respond?

• A. Wren should agree to keep the information confidential, even though Wren knows that she cannot guarantee confidentiality.
• B. Wren should tell Lark that she will try to keep the information as confidential as possible.
• C. Wren should not agree to Lark's request for confidentiality, but she should encourage Lark to report the information to law enforcement instead.
• D. Wren should immediately inform ABC Corp.'s management about Lark's request.

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?

• A. ArtisanWare should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination.
• B. ArtisanWare only needs to undertake due diligence procedures if EFG conducts business in countries with known corruption risks.
• C. ArtisanWare does not need to take any specific procedures to verify EFG ' s identity before accepting the transaction.
• D. ArtisanWare should examine EFG ' s net worth as part of deciding whether to allow the purchase on credit.

Which of the following statements about the effects of financial crime is MOST ACCURATE?

• A. The discovery of financial crime at an organization often leads to increased public confidence in the organization due to its effective detection measures.
• B. The damage that financial crime causes to an organization's reputation usually results in a measurable direct cost to the organization and its financial well-being.
• C. The occurrence of financial crime at an organization often results in a decrease in employee productivity due to concerns about job security.
• D. The existence of financial crime at an organization usually leads to individuals making additional investments in the company due to low stock prices.

Which of the following theories suggests that, when considering the possibility of violating a law. people are likely to ask themselves. " What will my spouse think if they find out? "

• A. Behavioral theory
• B. Operant theory
• C. Social control theory
• D. Cognitive theory