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

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

Section

Objectives

Fraud Prevention and Deterrence

- Management's Role

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

- Ethics

1. Ethical considerations in fraud examination

- Auditors' Role

1. Fraud detection responsibilities

- Corporate Governance

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q213-Q218):

NEW QUESTION # 213
During an external audit of an organization's financial statements. Peter, the external auditor, uncovers significant internal control deficiencies at the audit client's organization. He believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Peter do with regard to these findings?

A. Peter should report the findings in writing directly to the appropriate regulatory agencies
B. Peter should make a public announcement that he is withdrawing from the audit engagement.
C. Peter should provide a written communication about the findings to those charged with governance.
D. Peter should discreetly work with senior management to correct the underlying internal control deficiencies.

Answer: C

NEW QUESTION # 214
Which of the following steps should be incorporated into an organization's fraud risk assessment strategy to ensure the effectiveness of the fraud risk assessment?

A. Assess the significance of each inherent fraud risk to the organization.
B. Solicit stakeholder input to quantify the organization's greatest fraud risks and total fraud losses.
C. Determine the ideal number of fraud response protocols that the organization should implement.
D. Identify and reward the people and departments that are least likely to commit fraud.

Answer: A

Explanation:
An effective fraud risk assessment should identify inherent fraud risks and then assess both the likelihood and significance of those risks. Significance considers the potential impact of the fraud event on the organization, including financial loss, reputational harm, legal exposure, regulatory consequences, employee morale, and operational disruption. Option A is therefore correct. Option B is not a fraud risk assessment step because the purpose is to evaluate risk, not reward low-risk departments. Option C is too narrow and does not address the core assessment process. Option D is incorrect because fraud risk assessments do not require quantifying total fraud losses, and such amounts are often unknown or impossible to measure precisely. The assessment should prioritize risks so management can address the most serious vulnerabilities.

NEW QUESTION # 215
Which of the following is FALSE regarding a fraud risk assessment?

A. The assessment team should consider how employees behave as part of its assessment
B. The objective of the assessment is to provide an estimate of the organization s fraud losses
C. The designation of an area as being high risk does not conclusively mean that fraud is occurring there
D. The assessment should be used to improve employee fraud awareness

Answer: B

NEW QUESTION # 216
According to Steve Albrecht's research,______is the most common personal characteristic motivating fraudsters, and ________ is the most common organization-environment factor motivating fraudsters.

A. Living beyond their means, too much trust in key employees
B. High personal debt; lack of separation of duties
C. Desire for recognition, lack of separation of duties
D. Revenge: too much trust in key employees

Answer: A

NEW QUESTION # 217
Which of the following is TRUE regarding the internal audit function's reporting responsibilities pertaining to fraud?

A. The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence.
B. The internal audit function should discuss how and when to report fraud-related issues with senior management and the board of directors before such issues arise.
C. The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.
D. The internal audit function is permitted, but not required, to periodically report about the organization's fraud risks to senior management and the board of directors.

Answer: D

NEW QUESTION # 218
......

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