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ACFE CFE-Fraud-Prevention-and-Deterrence Exam Syllabus Topics:

SectionObjectives
Fraud Prevention and Deterrence- Auditors' Role
  • 1. Fraud detection responsibilities
- Corporate Governance
  • 1. Board oversight
  • 2. Roles and responsibilities
  • 3. Internal controls
- Management's Role
  • 1. Building anti-fraud programs
  • 2. Fraud risk assessment
- Ethics
  • 1. Ethical considerations in fraud examination

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q305-Q310):

NEW QUESTION # 305
During a fraud risk assessment, the assessment team is seeking information on the ethical tone set by upper and middle managers. The team members determine that, for this task, they would like to get candid one-on- one feedback from employees away from their peers. Which of the following techniques would be most helpful for them to use in gathering this information?

Answer: C

Explanation:
* Purpose of the Task:
* The team seeks candid feedback on ethical tone, which requires a confidential and direct interaction method.
* Comparison of Techniques:
* A. Interviews: Effective for obtaining one-on-one feedback in a private setting.
* B. Focus groups: Group dynamics may inhibit candid responses due to peer pressure.
* C. Anonymous feedback mechanisms: These provide insights but lack the depth and follow-up opportunities of interviews.
* D. Surveys: While useful for broad input, surveys are less effective for detailed exploration of ethical tone.
* Conclusion:Interviews are the most helpful technique for gathering one-on-one candid feedback.
References:ACFE guidance on fraud risk assessments and effective data collection methods.


NEW QUESTION # 306
To address an employee's consistent failure to meet deadlines, a manager removes the employee's ability to work from home This is an example of what type of behavioral response?

Answer: C

Explanation:
* Understanding Behavioral Responses:
* Punishment: Involves removing a privilege or applying a negative consequence to decrease undesired behavior.
* Removing the ability to work from home penalizes the employee for failing to meet deadlines.
* Analysis of Other Options:
* A. Positive reinforcement: Adds a reward for desired behavior.
* B. Negative reinforcement: Removes an unfavorable condition to encourage behavior.
* D. None of the above: Incorrect, as this is clearly punishment.
* Conclusion:The manager's action is an example of punishment.
References:ACFE materials on behavioral psychology and management practices.


NEW QUESTION # 307
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines_____________as
"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


NEW QUESTION # 308
Fraud risks related to corruption include all of the following EXCEPT;

Answer: C


NEW QUESTION # 309
Susannah Is conducting an external audit of a company In a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking her audit procedures, she discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Susannah's BEST response to these findings?

Answer: A

Explanation:
* Fraud Discovered During an Audit:
* Under ISAs, auditors must communicate findings of fraud to the appropriate governance body, such as the audit committee or board of directors.
* This ensures accountability and allows the organization to take appropriate remedial action.
* Analysis of Other Options:
* A. Confront management: This could compromise the investigation and is not the auditor's role.
* B. Report to regulators: Not immediately required unless legal reporting obligations apply.
* D. Confidentiality: Confidentiality rules allow communication with governance bodies as part of the audit process.
* Conclusion:Reporting findings to the audit committee aligns with ISA requirements and best practices.


NEW QUESTION # 310
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