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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q54-Q59):

NEW QUESTION # 54
Armando has been tasked with developing policies to help prevent crime by using the threat of criminal sanctions to control the immediate behavior of individuals. Which of the following strategies to control crime is Armando using?

A. Enforcement
B. Compliance
C. Deterrence
D. Prevention

Answer: C

NEW QUESTION # 55
Hart, Inc. hired Kathleen, a risk management expert, to design a risk management program for the organization. Kathleen should focus on balancing which of the following two factors when creating the program?

A. The organization's objectives and available resources.
B. Management's risk appetite and the organization's ability to meet its objectives.
C. Management's risk appetite and relevant regulatory requirements.
D. The organization's internal controls and its financial reporting model.

Answer: B

NEW QUESTION # 56
Professional auditing standards require that auditors incorporate an "element of unpredictability" in the selection of auditing procedures to be performed.

A. True
B. False

Answer: A

Explanation:
Professional Auditing Standards Requirement:
Standards such as the International Standards on Auditing (ISA) and Generally Accepted Auditing Standards (GAAS) require auditors to include elements of unpredictability in their audit procedures to reduce the risk of fraud.
Purpose of Unpredictability:
By varying the scope, timing, and extent of audits, auditors prevent potential fraudsters from anticipating audit procedures and adjusting their behavior.
Why A is Correct:
This aligns with established auditing principles to enhance fraud detection and maintain audit integrity.

NEW QUESTION # 57
Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To most effectively reinforce an anti-fraud culture, management should:

A. implement two separate sets of ethics policies, one for management and one for employees
B. Create an environment in which employees feel safe challenging management's decisions
C. Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
D. All of the above

Answer: B

Explanation:
Safe environment for challenges: This is the most effective method as it promotes transparency, accountability, and whistleblowing.

NEW QUESTION # 58
As part of its anti-fraud program, Elm Company is outlining the responsibilities of different stakeholders. Who is ultimately responsible for ensuring the effectiveness of the organization's anti- fraud program?

A. The compliance function
B. Management
C. Internal auditors
D. Forensic accountants

Answer: B

Explanation:
Management is ultimately responsible for ensuring the effectiveness of the organization's anti- fraudprogram. They set the tone at the top, establish internal controls, and ensure that the necessary resources and oversight mechanisms are in place to prevent and detect fraud. Other stakeholders, such as auditors and compliance officers, provide support but do not bear ultimate responsibility.

NEW QUESTION # 59
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