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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Fraud Prevention Framework	25%	- Fraud risk assessment processes - Fraud risk governance and oversight
Topic 2: Fraud Risk Management and Deterrence	25%	- Monitoring and continuous improvement - Fraud prevention strategies and programs
Topic 3: Corporate Governance and Ethics	25%	- Code of conduct and compliance programs - Ethical culture and tone at the top
Topic 4: Internal Controls and Fraud Prevention	25%	- Fraud detection and prevention controls - Internal control design and effectiveness

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q13-Q18):

NEW QUESTION # 13
Beezie, a Certified Fraud Examiner (CFE), took an introductory class in computer forensics.
When a client thought there might be evidence of a crime on their computer, Beezie decided to conduct a forensic examination of the computer even though she had no experience or advanced training in this area. Which of the following is TRUE regarding Beezie's conduct?

A. Beezie's conduct would be a violation of the ACFE Code of Professional Ethics.
B. Beezie's conduct would not be a violation of the ACFE Code of Professional Ethics.
C. Beezie's conduct would be a violation of the ACFE Code of Professional Ethics only if she did not find the fraudster.
D. Beezie's conduct would be a violation of the ACFE Code of Professional Ethics only if she also violated the law.

Answer: B

NEW QUESTION # 14
According to the differential reinforcement theory, behavior is weakened when positive rewards are gained or punishment is avoided.

A. True
B. False

Answer: B

Explanation:
Differential Reinforcement Theory:
This theory suggests behavior is strengthened when positive rewards are gained or punishment is avoided, not weakened.
The premise is the opposite of what the statement claims.
Conclusion: The statement is incorrect because differential reinforcement strengthens, not weakens, behavior.

NEW QUESTION # 15
Effectively documenting and communicating organizational hierarchies, including the proper flow of information, can be a helpful tool in preventing fraud.

A. False
B. True

Answer: B

Explanation:
Importance of Documenting Organizational Hierarchies:
Clearly defined hierarchies help establish accountability, delineate responsibilities, and ensure the proper flow of information, reducing opportunities for fraud.
It minimizes ambiguity in roles and reporting lines, which are often exploited in fraudulent schemes.
Preventive Value:
By ensuring that employees know whom to report to and how to escalate concerns, organizations foster transparency and reduce fraud risk.
Conclusion: Proper documentation and communication of hierarchies are effective tools in fraud prevention.

NEW QUESTION # 16
According to ACFE research, which of the following is TRUE?

A. Complaints about family problems is the most reported behavioral red flag displayed by fraud perpetrators.
B. Men and women commit similar amounts of occupational fraud.
C. Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.
D. Most employees who commit occupational fraud are first-time offenders.

Answer: D

Explanation:
The White-Collar Crime chapter summarizes ACFE research on occupational fraud perpetrators.
In the section addressing perpetrators' criminal backgrounds, the manual states that the vast majority of occupational fraudsters have no prior history of criminal fraud convictions and notes that only a small percentage had previously been convicted of a fraud-related offense. It concludes from these findings that most occupational fraudsters are first-time offenders. The manual also explains elsewhere that owners and executives tend to cause much larger median losses than lower-level employees, which eliminates option D. Because the question asks which statement is true according to ACFE research, the best answer is that most employees who commit occupational fraud are first- time offenders. This is a recurring finding in ACFE studies cited by the manual.

NEW QUESTION # 17
Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?

A. They assert that a corporate governance framework should ensure the equitable treatment of all the organization's shareholders.
B. They state that a corporate governance framework should require disclosure of all financial information to the organization's investors.
C. They are intended to be applicable in developed economies but not in emerging markets.
D. They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.

Answer: A

Explanation:
The G20/OECD Principles call for a corporate governance framework that ensures "the equitable treatment of all shareholders including minority and foreign shareholders." This principle reinforces fairness and equal rights in governance systems.
"The Principles... call for a corporate governance framework that protects the exercise of shareholders' rights and supports the equal treatment of all shareholders including minority and foreign shareholders."

NEW QUESTION # 18
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