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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Fraud Prevention Programs	15–20%	- Designing prevention strategies - Monitoring and continuous improvement - Communication and training
Topic 2: Corporate Governance	20–25%	- Roles of board, management, auditors - Governance frameworks and principles 1. Treadway Commission (COSO) 2. OECD guidelines - Internal control systems 1. COSO five components
Topic 3: Management's Fraud-Related Responsibilities	5–10%	- Reporting mechanisms - Establishing anti-fraud policies - Oversight and accountability
Topic 4: Understanding Criminal Behavior	5–10%	- Theories of crime causation 1. Differential association theory 2. Social control and social learning theory 3. Rational choice and routine activities theory - Behavior modification principles
Topic 5: White-Collar Crime	15–20%	- Impact on organizations and society - Legal prosecution and sanctions - Causal factors and opportunity structures - Definition and characteristics - Organizational vs occupational crime
Topic 6: Fraud Risk Assessment	15–20%	- Risk identification methodologies - Risk analysis and prioritization - Assessment implementation and documentation
Topic 7: Professional Ethics	5–10%	- Conflicts of interest and integrity - ACFE Code of Professional Ethics - Ethical decision-making

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q101-Q106):

NEW QUESTION # 101
Timothy, a new Certified Fraud Examiner (CFE), has been tasked with his first fraud examination engagement. To exercise appropriate professional skepticism as he conducts the engagement, Timothy should:

A. Begin the engagement with the belief that no fraud has occurred.
B. Maintain a skeptical attitude throughout the entire engagement even if the evidence shows no signs of fraudulent activity.
C. Form the engagement hypothesis without consideration for the nature of the assignment.
D. Maintain professional skepticism that can only be dispelled by evidence.

Answer: B

NEW QUESTION # 102
Which of the following Is NOT Included In Ihe five fraud risk management principles described In Fraud Risk Management Guide, a joint publication by COSO and the ACFE?

A. Performing comprehensive fraud risk assessments to identify specific fraud schemes
B. Deploying preventive and detective fraud control activities to mitigate fraud risk
C. Developing one-time evaluations for each fraud risk management principle
D. Communicating the expectations of those governing the fraud risk management program

Answer: C

Explanation:
Fraud risk management requires ongoing evaluations, not one-time assessments, to adapt to evolving risks.

NEW QUESTION # 103
Which of the following Is TRUE regarding an organization's ethics program?

A. To be most effective, access to the organization's ethics policy should be restricted to employees and other Internal parties only
B. In designing the ethics program, management should consider whether the organization currently has any ethical leadership Issues
C. All of the above
D. An effective written ethics policy alone is sufficient to communicate management's ethical philosophy and serve as a comprehensive ethics program

Answer: B

Explanation:
An effective ethics program involves assessing existing issues, such as ethical leadership gaps, and designing policies and practices to address them.

NEW QUESTION # 104
Which of the following Is one of the recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

A. Give shareholders oversight of hotline reporting programs
B. Develop a written charter for management
C. Have a mandatory independent audit committee
D. Have adequate compensation committee resources and authority

Answer: C

Explanation:
Treadway Commission Recommendations:
Establishing an independent audit committee is essential for oversight and reducing fraud risk in financial reporting.
Audit committees play a critical role in ensuring the integrity of financial statements.

NEW QUESTION # 105
Jacques, an internal auditor, and Brenna, the company's travel and expense manager, have had several disagreements about employee expense limits and policies. Jacques has just been told that he will lead the company's fraud risk assessment. During the fraud risk assessment, Jacques should:

A. Include his disagreements with Brenna as a factor when assessing the risk of fraud in the employee travel and expense function.
B. Automatically designate the employee travel and expense function as a high-risk area.
C. Confront Brenna about the disagreements and discuss how they increase the organization's risk of fraud.
D. Request that someone else perform the fraud risk assessment work related to employee travel and expenses.

Answer: D

Explanation:
The Fraud Risk Assessment chapter stresses that the people leading and conducting the assessment must be independent and objective. The manual specifically warns that personal experiences or biases can affect the evaluation of fraud risk in a business area. It gives an example that if someone on the team had a bad experience with a person in a department, that experience might improperly influence the assessment, and in that situation someone else should perform the work related to that department. This guidance directly applies here. Because Jacques has had repeated disagreements with Brenna, his objectivity regarding the travel and expense function could reasonably be questioned. To preserve the integrity and neutrality of the fraud risk assessment, he should request that someone else handle that area.

NEW QUESTION # 106
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