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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Fraud Prevention and Deterrence	25%	- Ethics and corporate governance - Fraud risk governance and organizational culture - Internal control systems and evaluation - Fraud prevention programs and frameworks - Fraud deterrence strategies and controls - Fraud risk assessment - Anti-fraud policies and procedures - Monitoring, auditing, and continuous improvement - Whistleblowing and reporting mechanisms

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q245-Q250):

NEW QUESTION # 245
An organization discovers that a purchasing manager approved contracts for a vendor secretly owned by a close friend. The manager did not receive any payments. Which fraud risk is MOST relevant?

A. Payroll fraud
B. Cash larceny
C. Conflict of interest
D. Financial statement fraud

Answer: C

Explanation:
A conflict of interest exists when personal relationships may improperly influence business decisions. Direct financial gain is not required. The undisclosed relationship can impair objectivity and create opportunities for favoritism that harm the organization.

NEW QUESTION # 246
Warren wants to decrease the amount of cash register discrepancies among the cashiers at his small business. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Warren to encourage the cashiers to reduce their discrepancies and keep their cash drawers balanced?

A. Demote employees who continue to have reconciliation discrepancies.
B. Deduct an hour's worth of pay for anyone whose cash drawer is not perfectly reconciled each day.
C. Take away an hour of paid time off from an employee each time their cash drawer is not balanced.
D. Publicly praise employees every time their cash drawers are balanced.

Answer: D

NEW QUESTION # 247
Which of the following is a TRUE statement regarding the role of a well-designed organizational structure within an anti-fraud program?

A. It is best to avoid formally documenting organizational structures to limit fraudsters' ability to circumvent oversight controls.
B. A confused organizational structure makes it harder for a fraudster to perpetrate and conceal their misdeeds.
C. Flowcharts displaying departmental structures can be a helpful tool in communicating the proper flow of information as part of fraud prevention efforts.
D. Communicating the proper flow of information to everyone in the organization can increase the organization's vulnerability to fraud.

Answer: C

NEW QUESTION # 248
According to ACFE research, which of the following is TRUE regarding prosecutions of white- collar criminals?

A. The most common internal response to a substantiated fraud case is to terminate the employee.
B. Only a small percentage of perpetrators are punished when an organization handles a fraud case internally.
C. Most fraud cases are only handled internally and are not referred to law enforcement for prosecution.
D. The primary reason that organizations decline to prosecute fraud cases is a lack of evidence.

Answer: A

Explanation:
The ACFE has found that terminating the employee involved in fraud is the most common internal response to substantiated cases. While many fraud cases are handled internally without being referred to law enforcement, this is often due to concerns such as reputational damage or cost considerations rather than a lack of evidence.

NEW QUESTION # 249
Green, a Certified Fraud Examiner (CFE). had an ethical dilemma regarding her business contract with her professional partners. Which of the following sources of guidance would be considered the lowest level of reference to help Green in determining the most ethical course of action?

A. Philosophical principles related to ethics
B. Guidance from her family and friends
C. Contract law
D. The ACFE Code of Professional Ethics

Answer: B

Explanation:
Family and friends: While valuable for personal advice, they are the lowest reference point in determining professional ethics.

NEW QUESTION # 250
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