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

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q104-Q109):

NEW QUESTION # 104
Which of the following steps would be MOST HELPFUL in evaluating the effectiveness of anti-fraud controls during a fraud risk assessment?

Answer: D

Explanation:
When evaluating whether anti-fraud controls are operating effectively and efficiently, the fraud risk assessment team should review the organization's relevant policies and procedures. This includes reviewing accounting policies, control documentation, prior audit reports, reports of fraud incidents, and other materials that show whether controls are designed and functioning as intended. Option A is incorrect because management override must be considered when assessing fraud controls. Option B may help identify industry risks, but it does not directly test the effectiveness of the organization's controls. Option D is too broad because the CFE materials refer to testing samples of transactions, not necessarily the entire population.
Therefore, reviewing available documentation of relevant policies and procedures is the best answer.


NEW QUESTION # 105
Which of the following criminological theories asserts that the three elements that have the most influence on crime are the availability of suitable targets, absence of capable guardians, and presence of motivated offenders?

Answer: A

Explanation:
Key Elements of Routine Activities Theory:
* This criminological theory asserts that crime is likely when three conditions converge:
* Availability of suitable targets.
* Absence of capable guardians (e.g., security or oversight).
* Presence of motivated offenders.
Why C is Correct:
* Routine activities theory focuses on the environmental and situational factors that facilitate crime, making it distinct from other criminological theories.
Why Other Options are Incorrect:
* A (Rational choice theory): Focuses on individual decision-making.
* B (Differential association theory): Emphasizes learning criminal behavior through interaction.
* D (Social control theory): Focuses on societal bonds preventing crime.


NEW QUESTION # 106
Helene has been working at WPX Corp. for nine years and has only received a small pay increase. She takes some of the company's products from the warehouse and sells them online, reasoning that the company owes her the extra money for years of underpaid service. This situation BEST illustrates which component of the Fraud Triangle?

Answer: A

Explanation:
The Fraud Triangle consists of perceived pressure, perceived opportunity, and rationalization. Helene's statement that the company "owes" her extra money shows rationalization. She is justifying theft by reframing it as compensation for years of perceived underpayment. Opportunity is present because she can access warehouse products, but the question asks what the situation best illustrates, and the emphasis is on her reasoning. Financial pressure would involve a need such as debt, medical bills, addiction, or another financial problem forcing action. Integrity lapse is not one of the classic Fraud Triangle components. Rationalization allows a fraudster to view dishonest conduct as acceptable, deserved, temporary, or harmless. Helene's belief that taking products is fair repayment is a textbook rationalization. Therefore, option D is correct.


NEW QUESTION # 107
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.

Answer: B


NEW QUESTION # 108
Which of the following is FALSE regarding fraud examiners responsibilities under the ACFE Code of Professional Ethics?

Answer: D


NEW QUESTION # 109
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