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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Fraud Prevention and Deterrence	25%	- Fraud risk governance and organizational culture - Fraud deterrence strategies and controls - Anti-fraud policies and procedures - Monitoring, auditing, and continuous improvement - Internal control systems and evaluation - Ethics and corporate governance - Whistleblowing and reporting mechanisms - Fraud prevention programs and frameworks - Fraud risk assessment

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q200-Q205):

NEW QUESTION # 200
Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Smith to encourage his team members to keep their cash drawers in balance?

A. Publicly call out and criticize employees whose cash drawers are over or short.
B. Demote employees who continue to have reconciliation discrepancies
C. Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.
D. Take away an hour of paid time off for each time the drawer is over or short

Answer: C

Explanation:
Positive reinforcement is the most effective way to encourage desired behavior by providing rewards for compliance.

NEW QUESTION # 201
Which of the following statements regarding monitoring employees for warning signs of fraud is MOST ACCURATE?

A. Employees should be made aware that management is watching for unexplained lifestyle and behavioral changes that might indicate fraudulent conduct.
B. Managers should be instructed that it is a violation of employee privacy rights to monitor employees for behaviors that are indicative of fraud.
C. Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.
D. An increase in employee wealth is always a sign of fraud that should be investigated.

Answer: A

Explanation:
The ACFE manual states:
"Employees should be trained to recognize and report signs such as unexplained lifestyle changes or behavioral red flags, and they should be informed that management will be watching for such indicators."

NEW QUESTION # 202
Which of the following statements regarding monitoring employees for warning signs of fraud is MOST ACCURATE?

A. Managers should be instructed to observe employees for any unusual lifestyle improvements, such as an unexplained increase in luxury purchases.
B. Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.
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: A

NEW QUESTION # 203
Which of the following is the MOST EFFECTIVE way for management to respond to incidents of fraud within an organization?

A. Keeping all known incidents of fraud private to protect the identities of parties involved.
B. Punishing frauds only if they have a significant financial impact.
C. Emphasizing to all employees that the company maintains a policy of zero tolerance for fraud.
D. Maintaining a policy that allows employees one warning before they are terminated for committing fraud

Answer: C

NEW QUESTION # 204
According to Silk and Vogel's research, which of the following is one of the ways that businesses rationalize illegal conduct?

A. Violations are caused by innocent errors in judgment rather than economic necessity.
B. Government regulation is unnecessary because the matters being regulated are unimportant.
C. Government regulations are justified because the additional costs of regulations and bureaucratic procedures increase government profits.
D. Corporate violations that involve large sums of money are often spread among so many organizations that each gains very little individually.

Answer: D

Explanation:
Silk and Vogel's research found that organizations often rationalize unethical or illegal behavior by diffusing responsibility across a group, thus minimizing perceived individual culpability.
This"shared guilt" justification is reflected in option D. The other options either misunderstand the research or do not reflect actual rationalizations used in white-collar crime contexts.

NEW QUESTION # 205
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