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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Fraud Prevention Framework	25%	- Fraud risk governance and oversight - Fraud risk assessment processes
Topic 2: Corporate Governance and Ethics	25%	- Code of conduct and compliance programs - Ethical culture and tone at the top
Topic 3: Fraud Risk Management and Deterrence	25%	- Fraud prevention strategies and programs - Monitoring and continuous improvement
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 (Q281-Q286):

NEW QUESTION # 281
Which of the following is the BEST reason to perform fraud risk assessments periodically?

A. External audits eliminate the need for updates
B. Regulations prohibit reassessment
C. Fraud risks remain constant over time
D. Business processes, personnel, and risks change over time

Answer: D

Explanation:
Organizations evolve continuously through growth, restructuring, technology changes, and personnel turnover. Periodic assessments help identify new vulnerabilities and ensure controls remain effective against emerging fraud risks.

NEW QUESTION # 282
Effectively documenting and communicating organizational hierarchies, including the proper flow of information, can be a helpful tool in preventing fraud.

A. False
B. True

Answer: B

Explanation:
Importance of Documenting Organizational Hierarchies:
Clearly defined hierarchies help establish accountability, delineate responsibilities, and ensure the proper flow of information, reducing opportunities for fraud.
It minimizes ambiguity in roles and reporting lines, which are often exploited in fraudulent schemes.
Preventive Value:
By ensuring that employees know whom to report to and how to escalate concerns, organizations foster transparency and reduce fraud risk.
Conclusion: Proper documentation and communication of hierarchies are effective tools in fraud prevention.

NEW QUESTION # 283
Which of the following controls would MOST effectively reduce the risk of fictitious vendors being added to the accounting system?

A. Annual inventory counts
B. Independent review of vendor setup requests with supporting documentation
C. Encrypting vendor payment files
D. Increasing employee bonuses

Answer: B

Explanation:
Independent verification of vendor creation helps ensure that new vendors are legitimate.
Supporting documentation, management approval, and validation procedures reduce the risk that employees can establish shell companies or fictitious vendors.

NEW QUESTION # 284
Aqua Corp.'s board of directors is meeting to discuss fraud risk management within the organization. Which of the following activities is among the board of directors' primary responsibilities related to fraud risk management for the company?

A. Implementing the fraud risk management program throughout the organization.
B. Overseeing the organization's fraud risk management activities.
C. Performing and regularly updating the fraud risk assessment.
D. Monitoring and proactively improving the fraud risk management program.

Answer: B

NEW QUESTION # 285
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 permitted, but not required, to periodically report about the organization's fraud risks to senior management and the board of directors.
D. The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.

Answer: B

Explanation:
Internal Audit Reporting Responsibilities:
Internal audit must maintain open communication with senior management and the board to ensure appropriate handling of fraud-related issues.
Establishing reporting protocols in advance ensures timely and consistent responses when fraud occurs.

NEW QUESTION # 286
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