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ACFE CFE-Fraud-Prevention-and-Deterrence Exam Syllabus Topics:

Section	Objectives
Topic 1: Fraud Prevention and Deterrence	- Corporate Governance 1. Board oversight 2. Roles and responsibilities 3. Internal controls - Auditors' Role 1. Fraud detection responsibilities - Management's Role 1. Fraud risk assessment 2. Building anti-fraud programs - Ethics 1. Ethical considerations in fraud examination

Section

Objectives

Topic 1: Fraud Prevention and Deterrence

- Corporate Governance

1. Board oversight
2. Roles and responsibilities
3. Internal controls

- Auditors' Role

1. Fraud detection responsibilities

- Management's Role

1. Fraud risk assessment
2. Building anti-fraud programs

- Ethics

1. Ethical considerations in fraud examination

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q264-Q269):

NEW QUESTION # 264
Mario is charged with implementing a fraud reporting program on behalf of his organization. Which of the following is a best practice that Mario should follow to ensure that the program is successful?

A. Inform employees that they are required to report any information about suspected fraud only to their direct supervisor.
B. Inform employees that the names of all individuals who report misconduct will be shared with the organization ' s management and law enforcement.
C. Inform employees that they can make their report anonymously (where permitted by law).
D. Inform employees that they will be held accountable for reporting any tips that cannot be verified.

Answer: C

Explanation:
Allowing employees to report fraud anonymously is a best practice in fraud reporting programs. This encourages whistleblowers to come forward without fear of retaliation or reprisal, increasing the likelihood of fraud detection. Transparency about confidentiality policies further supports employee trust in the reporting system.
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NEW QUESTION # 265
Which of the following statements Is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

A. Professional skepticism involves maintaining a mindset that no fraud has occurred
B. Fraud examiners should not relax their skeptical attitudes under any circumstances.
C. Fraud examiners should form the engagement hypothesis without regard to the nature of the assignment
D. Professional skepticism can be dispelled only by evidence

Answer: D

NEW QUESTION # 266
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. Adequate audit committee resources and authority
B. A mandatory independent compensation committee
C. Shareholder oversight of internal controls
D. A written charter for management

Answer: A

NEW QUESTION # 267
Which of the following is one of the four recommendations made by the National Commission on Fraudulent Financial Reporting the Treadway Commission to reduce the probability of fraud in financial reports?

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

Answer: C

Explanation:
The Corporate Governance chapter explains that the Treadway Commission made four recommendations aimed at reducing the likelihood of fraud in financial reporting. These recommendations were directed to the board of directors' audit committee and included having an independent audit committee, a written charter for the audit committee, adequate resources and authority, and informed, vigilant, and effective audit committee members. The manual specifically states that the existence of an audit committee and a written charter is not enough; the committee must also have adequate resources and authority to carry out its responsibilities. That language directly matches option C. The other choices either substitute the wrong committee, assign the charter to management instead of the audit committee, or improperly shift oversight of internal controls to shareholders.

NEW QUESTION # 268
According to ACFE research, which of the following is TRUE?

A. Most fraudsters have previous criminal convictions for fraud-related offenses.
B. Men commit significantly more frauds than women do.
C. An unwillingness to share duties is the most reported red flag displayed by fraud perpetrators prior to the detection of their crime.
D. Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.

Answer: C

Explanation:
ACFE research highlights that an unwillingness to share duties is one of the most common red flags exhibited by fraud perpetrators. This behavior often indicates a desire to conceal fraudulent activities. Most fraudsters do not have prior convictions, and frauds committed by executives tend to cause higher losses compared to those committed by staff-level employees.

NEW QUESTION # 269
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