ACFE EXAM 2025 WITH 100% ACCURATE
SOLUTIONS
According to The Institute of Internal Auditors' International Standards for the Professional Practice of
Internal Auditing, due professional care implies infallibility.
A. True
B. False - ✅✅✅CORRECT -False
Which of the following is TRUE regarding organizational structure?
A. Companies with departments that are isolated geographically have a reduced risk of fraud
B. The existence of many specialized departments within a company generally increases the overall risk
of fraud within the organization
C. Misbehavior is more likely to be detected in a complex organizational structure than in a simple
organizational structure
D. All of the above - ✅✅✅CORRECT -The existence of many specialized departments within a
company generally increases the overall risk of fraud within the organization
Detective anti-fraud controls include all of the following EXCEPT:
A. Hotline
B. Proactive data analysis techniques
C. Physical inspections
D. Hiring policies and procedures - ✅✅✅CORRECT -Hiring policies and procedures
According to AU Section 240, the auditor's assessment of the risk of material misstatement due to fraud
at the financial statement level should have an effect on which of the following aspect(s) of an audit?
A. Consideration of accounting principles used
, B. Assignment and supervision of personnel
C. Choice of auditing procedures
D. All of the above - ✅✅✅CORRECT -All the above
The risk of the auditor not detecting a material misstatement resulting from employee fraud is greater
than the risk of the auditor not detecting a material misstatement resulting from management fraud.
A. True
B. False - ✅✅✅CORRECT -False
The risk of an auditor not detecting a material misstatement resulting from fraud is higher than the risk
of an auditor not detecting a material misstatement resulting from the error.
A. True
B. False - ✅✅✅CORRECT -True
Which of the following is/are included in the five fraud risk management principles described in the
COSO/ACFE Fraud Risk Management Guide?
A. Communicating the expectations of those governing the fraud risk management program
B. Developing ongoing evaluations for each fraud risk management principle
C. Performing comprehensive fraud risk assessments to identify specific fraud schemes
D. All of the above - ✅✅✅CORRECT -All of the above
Which of the following is TRUE regarding fraud risks?
A. The objective of anti-fraud controls is to make the inherent fraud risk significantly smaller than the
residual fraud risk.
B. The objective of anti-fraud controls is to make the residual fraud risk significantly smaller than the
inherent fraud risk
SOLUTIONS
According to The Institute of Internal Auditors' International Standards for the Professional Practice of
Internal Auditing, due professional care implies infallibility.
A. True
B. False - ✅✅✅CORRECT -False
Which of the following is TRUE regarding organizational structure?
A. Companies with departments that are isolated geographically have a reduced risk of fraud
B. The existence of many specialized departments within a company generally increases the overall risk
of fraud within the organization
C. Misbehavior is more likely to be detected in a complex organizational structure than in a simple
organizational structure
D. All of the above - ✅✅✅CORRECT -The existence of many specialized departments within a
company generally increases the overall risk of fraud within the organization
Detective anti-fraud controls include all of the following EXCEPT:
A. Hotline
B. Proactive data analysis techniques
C. Physical inspections
D. Hiring policies and procedures - ✅✅✅CORRECT -Hiring policies and procedures
According to AU Section 240, the auditor's assessment of the risk of material misstatement due to fraud
at the financial statement level should have an effect on which of the following aspect(s) of an audit?
A. Consideration of accounting principles used
, B. Assignment and supervision of personnel
C. Choice of auditing procedures
D. All of the above - ✅✅✅CORRECT -All the above
The risk of the auditor not detecting a material misstatement resulting from employee fraud is greater
than the risk of the auditor not detecting a material misstatement resulting from management fraud.
A. True
B. False - ✅✅✅CORRECT -False
The risk of an auditor not detecting a material misstatement resulting from fraud is higher than the risk
of an auditor not detecting a material misstatement resulting from the error.
A. True
B. False - ✅✅✅CORRECT -True
Which of the following is/are included in the five fraud risk management principles described in the
COSO/ACFE Fraud Risk Management Guide?
A. Communicating the expectations of those governing the fraud risk management program
B. Developing ongoing evaluations for each fraud risk management principle
C. Performing comprehensive fraud risk assessments to identify specific fraud schemes
D. All of the above - ✅✅✅CORRECT -All of the above
Which of the following is TRUE regarding fraud risks?
A. The objective of anti-fraud controls is to make the inherent fraud risk significantly smaller than the
residual fraud risk.
B. The objective of anti-fraud controls is to make the residual fraud risk significantly smaller than the
inherent fraud risk
