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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%	- Ethical culture and tone at the top - Code of conduct and compliance programs
Topic 4: Internal Controls and Fraud Prevention	25%	- Internal control design and effectiveness - Fraud detection and prevention controls

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q119-Q124):

NEW QUESTION # 119
According to Diane Vaughan, which of the following factors increases an organization's inherent inclination toward committing crime?

A. All of the above
B. Management seeks out diversity in attitudes and perspectives when hiring employees
C. Rewards are given to employees who challenge the status quo
D. Management links employee performance goals with company performance goals

Answer: D

Explanation:
Vaughan highlights that linking employee performance goals with company goals can create undue pressure, fostering an environment where unethical behavior becomes rationalized.

NEW QUESTION # 120
As part of its anti-fraud program, Oak Company is outlining the responsibilities of different stakeholders. Who is ultimately responsible for setting the organization's ethical tone?

A. Management
B. Fraud examiners
C. Human resources
D. General counsel

Answer: A

Explanation:
Management is ultimately responsible for setting the ethical tone of an organization, often referred to as the "tone at the top." This tone influences the overall ethical culture, guiding employee behavior and setting the standard for compliance and integrity. While legal, HR, and fraud professionals play supporting roles, it is leadership's responsibility to establish, model, and reinforce ethical conduct.

NEW QUESTION # 121
According to the Fraud Risk Management Guide, a joint publication by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the ACFE, under which principle should an organization communicate the expectations of those overseeing the fraud risk management program?

A. Fraud control activities
B. Fraud investigation and corrective action
C. Fraud risk governance
D. Fraud risk management monitoring activities

Answer: C

NEW QUESTION # 122
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. Automatically designate the employee travel and expense function as a high-risk area.
B. Include his disagreements with Brenna as a factor when assessing the risk of fraud in the employee travel and expense function.
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 # 123
Which of the following is NOT a purpose served by a professional organization's code of conduct?

A. It serves as a reference and benchmark for ethical guidance
B. It facilitates practical enforcement and profession-wide Internal discipline.
C. It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles
D. It replaces the need for individuals to consult their own conscience.

Answer: D

Explanation:
A professional code of conduct serves as a guideline for ethical behavior, provides benchmarks for decision-making, and facilitates enforcement within the profession.
It does not replace the personal responsibility to exercise individual judgment and consult one's conscience.

NEW QUESTION # 124
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