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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%	- Ethical culture and tone at the top - Code of conduct and compliance programs
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 (Q12-Q17):

NEW QUESTION # 12
Based on research regarding the criminogenic nature of organizations, employees with strong personal values and ethics will always disobey a superior's direct order to engage in fraudulent behavior, despite an inherent desire to obey authority figures.

A. True
B. Flase

Answer: B

Explanation:
Criminogenic Nature of Organizations:
Research suggests that organizational culture and pressures can override an individual's personal values, especially when authority figures issue direct orders to engage in unethical behavior.
Why B is Correct:
Strong personal values do not guarantee resistance to unethical orders, as obedience to authority is a powerful psychological force, as seen in studies like the Milgram experiment.
Implication for Fraud Prevention:
Organizations must establish strong ethical environments to reduce the influence of authority pressure on employees

NEW QUESTION # 13
Which action BEST demonstrates management's commitment to fraud prevention?

A. Delegating all ethics responsibilities to auditors
B. Reducing fraud training expenditures
C. Maintaining a visible commitment to ethical conduct and accountability
D. Conducting investigations only after losses occur

Answer: C

Explanation:
Management's visible commitment to ethics establishes expectations throughout the organization. Employees are more likely to follow policies and report concerns when leadership consistently demonstrates integrity and accountability.

NEW QUESTION # 14
Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

A. Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.
B. Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file.
Susan complied with the court order, even though she did not have the client's authorization to do so.
C. Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.
D. All of the above are violations

Answer: D

Explanation:
CFEs must adhere to principles of confidentiality, diligence, and focus in their work.
Failing to follow these standards compromises the integrity and credibility of their practice.
Conclusion:All the described scenarios involve violations of the ACFE Code of Professional Ethics.

NEW QUESTION # 15
Having specialized departments within a company often increases the overall risk ot traud by the organization.

A. False
B. True

Answer: B

Explanation:
Risks Associated with Specialized Departments:
While specialization improves efficiency, it can create silos that hinder communication, coordination, and oversight, increasing fraud risk.
Isolated departments may lack cross-functional checks and balances.
Conclusion: Specialized departments often increase fraud risk if not managed with proper controls and oversight.

NEW QUESTION # 16
While, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination She did not find fraud, but. In White's opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence of fraud Under the ACFE Code of Professional Ethics.
White may include her opinion on the controls in her report to management.

A. False
B. True

Answer: B

Explanation:
CFEs are obligated to report material findings, including deficiencies that may facilitate fraud, even if no fraud is found.
Providing such insights aligns with the principles of due diligence and professional responsibility.
Professional Reporting Practices:
Including opinions on internal control deficiencies adds value to the examination and supports fraud prevention efforts.
Conclusion: White may include her opinion on control deficiencies in her report.

NEW QUESTION # 17
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