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| Section | Weight | Objectives |
|---|
| Topic 1: Fraud Prevention and Deterrence | 25% | - Fraud risk assessment - Internal control systems and evaluation - Fraud deterrence strategies and controls - Fraud prevention programs and frameworks - Anti-fraud policies and procedures - Whistleblowing and reporting mechanisms - Monitoring, auditing, and continuous improvement - Fraud risk governance and organizational culture - Ethics and corporate governance
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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q112-Q117):
NEW QUESTION # 112
According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO).________Is "a process. effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance."
- A. Financial reporting
- B. Operational risk assessment
- C. Internal control
- D. Fraud risk management
Answer: C
Explanation:
COSO defines internal control as a process enacted by an entity's board, management, and personnel to provide reasonable assurance regarding objectives in operations, reporting, and compliance.
NEW QUESTION # 113
To reinforce an anti-fraud culture, it is BEST for an organization's management to:
- A. Discipline any employees who question their direct supervisor's behavior or policies.
- B. Use a checklist of initiatives to ensure that all the elements of a strong corporate culture are in place.
- C. Demonstrate the same ethical behavior required of individuals at lower levels of the company.
- D. Discourage employees from voicing concerns regarding senior leadership's actions or decisions.
Answer: C
Explanation:
The ACFE manual emphasizes "tone at the top" as a foundational element of a strong ethical culture.
"Management must show employees through its words and actions that dishonest or unethical behavior will not be tolerated."
NEW QUESTION # 114
Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?
- A. They are intended to be applicable in emerging markets but not in developed economies.
- B. They assert that a corporate governance framework should ensure that the treatment of shareholders differs based on the class of stock they own.
- C. They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.
- D. They state that a corporate governance framework should promote transparent and fair markets and the efficient allocation of resources.
Answer: D
Explanation:
The G20/OECD Principles of Corporate Governance advocate for transparent and fair markets and the efficient allocation of resources, making Option A the correct statement. These principles are internationally recognized as a standard for policy makers, investors, corporations, and other stakeholders worldwide. The principles are intended to apply to both developed and emerging markets, not justemerging ones (rejecting Option C), and while influential, they are not legally binding mandates (rejecting Option D). They also support the equitable treatment of shareholders, regardless of share class (rejecting Option B).
NEW QUESTION # 115
According to the results of behavioral studies, such as those conducted by B. F. Skinner, application of punishment to undesired behavior typically results in which of the following?
- A. No effect on the occurrence of the undesired behavior
- B. Permanent suppression of the undesired behavior
- C. increase in the occurrence of the undesired behavior
- D. Temporary suppression of the undesired behavior
Answer: D
Explanation:
Punishment may temporarily suppress undesired behavior but does not address the root cause or provide alternative positive behaviors.
Once punishment ceases, the behavior often resurfaces.
NEW QUESTION # 116
Helene has been working at WPX Corp. for nine years. She takes some of the company's products from the warehouse and sells them online. Helene tells herself that the company owes it to her for her "years of underpaid service." This situation BEST illustrates which component of the Fraud Triangle?
- A. Perceived opportunity
- B. Perceived non-shareable financial need
- C. Integrity lapse
- D. Rationalization
Answer: D
NEW QUESTION # 117
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