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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Internal Controls and Fraud Prevention	25%	- Internal control design and effectiveness - Fraud detection and prevention controls
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%	- Monitoring and continuous improvement - Fraud prevention strategies and programs
Topic 4: Fraud Prevention Framework	25%	- Fraud risk assessment processes - Fraud risk governance and oversight

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q255-Q260):

NEW QUESTION # 255
Which of the following is the BEST reason to perform fraud risk assessments periodically?

A. External audits eliminate the need for updates
B. Fraud risks remain constant over time
C. Regulations prohibit reassessment
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 # 256
"Crimes of the Middle Classes" finds that all the following factors have contributed to the rising problem of economic crime EXCEPT:

A. The economy's decreased reliance on credit and a decline in personal debt.
B. Media sources sending the message that no one has to settle for second best.
C. Advancement of information technologies increasing the opportunity for misconduct.
D. The increase in funds available from government assistance programs.

Answer: A

NEW QUESTION # 257
Which of the following Is FALSE regarding a fraud risk assessment?

A. The assessment should be used to improve employee fraud awareness.
B. The designation of an area as being high risk does not conclusively mean that fraud is occurring there.
C. The assessment team should consider how employees behave as part of Its assessment
D. The objective of the assessment is to provide an estimate of the organization's fraud losses.

Answer: D

Explanation:
Purpose of Fraud Risk Assessment:
Fraud risk assessment aims to identify vulnerabilities and evaluate the organization's exposure to fraud risks. It does not specifically provide an estimate of fraud losses.
Why D is Correct:
Estimating fraud losses is not a standard objective of fraud risk assessments; rather, they focus on identifying and mitigating risks.

NEW QUESTION # 258
A report by a fraud examiner is privileged from disclosure by anyone other than the client.

A. True
B. False

Answer: B

Explanation:
Privilege of Fraud Examination Reports:
Reports prepared by fraud examiners are not inherently privileged. Privilege depends on the legal framework, the purpose of the report, and whether the attorney-client privilege or work-product doctrine applies.
Without specific legal protection, reports may be subject to disclosure.
Conclusion: Fraud examination reports are not automatically privileged.

NEW QUESTION # 259
According to the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control-- Integrated Framework (the Framework), there are five interrelated components of a company's internal control. Which of the following is NOT among these five components?

A. Risk assessment
B. Ethical culture
C. Monitoring
D. Control activities

Answer: B

Explanation:
While ethical culture is critical to the control environment, it is not one of the five standalone components of the framework.
Conclusion: Ethical culture is not a separate component but a part of the control environment.

NEW QUESTION # 260
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