CFE-Fraud-Prevention Positive Feedback | Valid CFE-Fraud-Prevention Practice Questions

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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q238-Q243):

NEW QUESTION # 238
Which of the following statements regarding the objectives of a fraud risk management program is TRUE?

A. A fraud risk management program should only focus on addressing fraud after it occurs.
B. A fraud risk management program should include the formal procedures that management takes in response to a fraud, such as rebuilding stakeholders' confidence in the organization.
C. A fraud risk management program should prioritize activities that proactively identify and assess fraud risks over activities that detect fraud while it is occurring.
D. A fraud risk management program should incorporate policies and procedures designed to both prevent and detect fraud but should not address fraud responses.

Answer: B

NEW QUESTION # 239
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 are required to be implemented by all corporations in the jurisdictions that have officially adopted them.
C. They state that a corporate governance framework should promote transparent and fair markets and the efficient allocation of resources.
D. They assert that a corporate governance framework should ensure that the treatment of shareholders differs based on the class of stock they own.

Answer: C

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 # 240
Timothy, a new Certified Fraud Examiner (CFE), has been tasked with his first fraud examination engagement. To exercise appropriate professional skepticism as he conducts the engagement, Timothy should:

A. Maintain a skeptical attitude throughout the entire engagement even if the evidence shows no signs of fraudulent activity.
B. Maintain professional skepticism that can only be dispelled by evidence.
C. Begin the engagement with the belief that no fraud has occurred.
D. Form the engagement hypothesis without consideration for the nature of the assignment.

Answer: A

NEW QUESTION # 241
Baldwin, a Certified Fraud Examiner (CFE), has an ethical dilemma regarding his business contract with his professional partners. Which of the following scenarios demonstrates Baldwin consulting a source of guidance that would be considered the LOWEST level of reference to use for determining the most ethical action to take?

A. Baldwin contemplating philosophical principles related to ethics.
B. Baldwin reviewing the ACFE Code of Professional Ethics.
C. Baldwin asking for guidance from his family and friends.
D. Baldwin reading the applicable contract law.

Answer: C

NEW QUESTION # 242
An employee who previously received excellent performance evaluations suddenly begins living far beyond known financial means. What should management consider?

A. The behavior may represent a fraud red flag requiring further attention
B. The employee should be terminated immediately
C. The behavior is irrelevant to fraud risk
D. The behavior proves fraud has occurred

Answer: A

Explanation:
Living beyond one's means is a common behavioral red flag associated with occupational fraud.
Although it does not prove wrongdoing, it may warrant additional scrutiny when combined with other risk indicators.

NEW QUESTION # 243
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