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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q115-Q120):

NEW QUESTION # 115
According to the 2018 Report to the Nations, which of the following is the most common method by which frauds are detected?

Answer: B


NEW QUESTION # 116
Employee anti-fraud education should:

Answer: A

Explanation:
Purpose of Anti-Fraud Education:
Education is most effective when employees understand the real consequences of fraud. Providing examples of prior incidents reinforces the importance of compliance.
Analysis of Other Options:
A: Include detection procedures:While this can increase awareness, it risks exposing sensitive controls.
C: Restricting to formal mechanisms:Education should be flexible and incorporate informal, ongoing messaging.
D: Executives and professionals only:While they play an essential role, education should engage employees at all levels.
Conclusion:Including examples of prior misconduct effectively conveys the seriousness of fraud prevention.
References:ACFE best practices for fraud education programs.


NEW QUESTION # 117
Employees should be kepi unaware that management is watching for lifestyle and behavior changes in staff members that might indicate fraud

Answer: A


NEW QUESTION # 118
The internal auditor's fraud-related responsibilities include which of the following?

Answer: C

Explanation:
* Internal Auditor's Role in Fraud Risk Management:
* Internal auditors are not directly responsible for establishing or maintaining anti-fraud controls (Option D). This responsibility lies with management.
* They are also not responsible for obtaining reasonable assurance that financial statements are free of fraud (Option A). This is the role of external auditors.
* Oversight of management's fraud risk actions (Option B) is primarily a governance role, not the auditor's direct responsibility.
* Internal auditors focus on identifying and assessing fraud risks, evaluating controls, and recommending further action when necessary.
* Conclusion:Option C aligns with the internal auditor's responsibilities as per the standards outlined in the ACFE's fraud risk management framework.
References:ACFE documentation on internal auditing responsibilities and fraud risk assessments.


NEW QUESTION # 119
According to the routine activities theory, all of the following are important elements that influence crime EXCEPT:

Answer: D

Explanation:
Routine activities theory identifies three main elements necessary for crime: a motivated offender, a suitable target, and the absence of capable guardians. The lack of accountability for misdeeds is not part of this theory, as it focuses on situational factors that facilitate criminal opportunities rather than broader social or institutional factors.


NEW QUESTION # 120
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