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

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

Section

Objectives

Fraud Prevention and Deterrence

- Management's Role

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

- Auditors' Role

1. Fraud detection responsibilities

- Ethics

1. Ethical considerations in fraud examination

- Corporate Governance

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q55-Q60):

NEW QUESTION # 55
According to criminologist Charles McCaghy, which of the following is the most compelling factor behind deviance by organizations?

A. Profit pressure
B. Executive failures
C. Excessive regulatory requirements
D. Unethical corporate culture

Answer: A

NEW QUESTION # 56
Willow, Inc. has a complex organizational structure with many specialized departments. The structure of Willow, Inc. increases the likelihood that fraud will go undetected within the organization.

A. False
B. True

Answer: A

NEW QUESTION # 57
The generation and use of relevant, quality information to support the functioning of internal control is a principle related to which component of the Committee of Sponsoring Organizations of the Treadway Commissions (COSO) Internal Control-Integrated Framework (the Framework)?

A. Control environment
B. Monitoring
C. Information and communication
D. Risk assessment

Answer: D

NEW QUESTION # 58
Which of the following statements regarding monitoring employees for warning signs of fraud is MOST ACCURATE?

A. Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.
B. Managers should be instructed to observe employees for any unusual lifestyle improvements, such as an unexplained increase in luxury purchases.
C. Managers should only observe employees for signs of suspicious behavioral or lifestyle changes if they can do so without the employees' knowledge.
D. An increase in employee wealth is always a sign of fraud that should be investigated.

Answer: B

NEW QUESTION # 59
Which of the following is TRUE regarding the communication of the fraud risk assessment process?

A. The communication should be made in a format mat is most appropriate for the culture of the organization
B. The communication should be visibly disseminated throughout the business
C. All of the above
D. The more personalized the communication, the more effective it will be in encouraging employees to participate

Answer: C

Explanation:
Communication of Fraud Risk Assessment Process:Effective communication ensures that employees understand the objectives and importance of the fraud risk assessment process. The following practices contribute to its success:
A: Personalization:Personalized communication increases engagement by making the information relevant to employees' roles and responsibilities.
B: Appropriateness to Culture:Aligning the communication format with the organization's culture ensures clarity and resonance.
C: Visibility:Disseminating communication broadly reinforces its significance and encourages widespread participation.
Why All Options are Correct:
Fraud risk assessments require buy-in and participation across all levels of the organization. Combining personalization, cultural alignment, and visibility creates an effective communication strategy.
Conclusion:All three practices-personalization, cultural appropriateness, and visibility-are critical for effective communication.
References:Best practices for fraud risk communication as outlined in ACFE fraud risk management guides.

NEW QUESTION # 60
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