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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

SectionWeightObjectives
Fraud Prevention Framework25%- Fraud risk assessment processes
- Fraud risk governance and oversight
Corporate Governance and Ethics25%- Code of conduct and compliance programs
- Ethical culture and tone at the top
Internal Controls and Fraud Prevention25%- Fraud detection and prevention controls
- Internal control design and effectiveness
Fraud Risk Management and Deterrence25%- Monitoring and continuous improvement
- Fraud prevention strategies and programs

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q172-Q177):

NEW QUESTION # 172
Who is ultimately responsible for responding appropriately to instances of fraud within an organization?

Answer: C

Explanation:
Fraud Response Responsibilities:
Management is responsible for responding to fraud because they oversee the organization's operations, culture, and compliance frameworks.
Other parties, such as internal auditors and the audit committee, provide oversight and recommendations but do not directly implement responses.
Conclusion: Management has the ultimate responsibility for responding appropriately to fraud.


NEW QUESTION # 173
Julia, an internal auditor, is formalizing a process to evaluate the effectiveness of the company's control system over time, including both ongoing evaluations and periodic, separate evaluations.
Julia's initiative BEST pertains to the component of the Committee of Sponsoring Organizations of the Treadway Commission's COSO Internal Control--Integrated Framework the Framework:

Answer: D

Explanation:
The Management's Fraud-Related Responsibilities chapter defines monitoring as the process that assesses the effectiveness of a control system over time. The manual states that this component should include both ongoing evaluations and periodic separate evaluations, and that the findings should be measured against predefined criteria. This wording matches the question almost exactly. Monitoring also includes timely evaluation and communication of internal control deficiencies to the appropriate parties for corrective action. Because Julia is establishing a process for continuous and separate reviews of control effectiveness over time, her initiative falls squarely within the monitoring component of COSO's Internal Control--Integrated Framework.
None of the other components focus on the continuing evaluation of whether controls remain present and functioning over time in this way.


NEW QUESTION # 174
Gregory, an internal auditor, and Brandon, the company's purchasing manager, have had several heated disagreements over purchasing procedures and policies. Gregory has just been told that he will be the lead on the company's fraud risk assessment. During the fraud risk assessment.
Gregory should:

Answer: C

Explanation:
Fraud Risk Assessment Objectivity:
The assessment must remain unbiased, but any prior disagreements or conflicts may highlight areas where policies or procedures are unclear, increasing fraud risks.
Why C is Correct:
Incorporating disagreements provides context to evaluate risks objectively, ensuring that all relevant factors are considered without bias.


NEW QUESTION # 175
A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?

Answer: D

Explanation:
ISSAI Standards:
The International Standards of Supreme Audit Institutions (ISSAI) require government auditors to consider fraud and abuse during financial audits. Abuse includes improper use of authority or resources, which may not always meet the legal threshold of fraud but still warrants attention.
Expanded Audit Scope:
Unlike private-sector audits, public-sector audits often have broader objectives, requiring vigilance for misuse of public funds and resources.
Why A is Correct:
Staying alert to abuse ensures comprehensive accountability, aligning with ISSAI's objectives.


NEW QUESTION # 176
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.


NEW QUESTION # 177
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