CFE-Fraud-Prevention Practice Test: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam & CFE-Fraud-Prevention Exam Preparation & CFE-Fraud-Prevention Study Guide

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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
White-Collar Crime	15–20%	- Organizational vs occupational crime - Definition and characteristics - Causal factors and opportunity structures - Legal prosecution and sanctions - Impact on organizations and society
Corporate Governance	20–25%	- Internal control systems 1. COSO five components - Roles of board, management, auditors - Governance frameworks and principles 1. OECD guidelines 2. Treadway Commission (COSO)
Understanding Criminal Behavior	5–10%	- Behavior modification principles - Theories of crime causation 1. Differential association theory 2. Rational choice and routine activities theory 3. Social control and social learning theory
Professional Ethics	5–10%	- Conflicts of interest and integrity - ACFE Code of Professional Ethics - Ethical decision-making
Fraud Prevention Programs	15–20%	- Monitoring and continuous improvement - Communication and training - Designing prevention strategies
Management's Fraud-Related Responsibilities	5–10%	- Establishing anti-fraud policies - Oversight and accountability - Reporting mechanisms
Fraud Risk Assessment	15–20%	- Risk identification methodologies - Assessment implementation and documentation - Risk analysis and prioritization

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q253-Q258):

NEW QUESTION # 253
Which of the following scenarios would MOST LIKELY be considered a violation of the ACFE Code of Professional Ethics?

A. All of the above are violations.
B. Mae, a CFE, was hired by a client to conduct a fraud examination but found nothing unusual. A year later, she received a legal order from the local prosecutor's office to provide the client's file.
Mae complied with the court order despite not having the client's authorization to provide the file.
C. Eric, a CFE, accepted a fraud examination assignment and then instructed his employee to assess the company's accounts receivable for indications of fraud. He accepted the employee's work that showed no evidence of fraud without conducting his own assessment. However, the employee missed some key information, causing Eric to fail to uncover a costly fraud scheme.
D. Grace, a CFE, uncovered internal control deficiencies that were material but unrelated to the financial statement fraud she was investigating. In her final report to management, Grace included information about the deficiencies despite their being unrelated to the situation she was hired to investigate.

Answer: A

Explanation:
Each scenario involves violations of the ACFE Code of Professional Ethics including unauthorized disclosure, failure to exercise due professional care, and inclusion of information outside of the scope of the engagement.
"CFEs must demonstrate a commitment to integrity and objectivity, avoid conflicts of interest, perform assignments with due diligence, and comply with lawful orders, balancing client confidentiality with legal obligations."

NEW QUESTION # 254
Which of the following is the MOST EFFECTIVE way for management to respond to incidents of fraud within an organization?

A. Punishing frauds only if they have a significant financial impact.
B. Keeping all known incidents of fraud private to protect the identities of parties involved.
C. Maintaining a policy that allows employees one warning before they are terminated for committing fraud
D. Emphasizing to all employees that the company maintains a policy of zero tolerance for fraud.

Answer: D

NEW QUESTION # 255
Which action BEST demonstrates management's commitment to fraud prevention?

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

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 # 256
Which of the following Is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance?

A. Risk tolerance
B. Operating environment
C. Independent monitoring
D. Governance and culture

Answer: D

Explanation:
Governance and culture set the foundation for an organization's risk management practices by establishing oversight, ethical values, and the operating structure.

NEW QUESTION # 257
Which of the following is a TRUE statement regarding the role of a well-designed organizational structure within an anti-fraud program?

A. Communicating the proper flow of information to everyone in the organization can increase the organization's vulnerability to fraud.
B. Flowcharts displaying departmental structures can be a helpful tool in communicating the proper flow of information as part of fraud prevention efforts.
C. A confused organizational structure makes it harder for a fraudster to perpetrate and conceal their misdeeds.
D. It is best to avoid formally documenting organizational structures to limit fraudsters' ability to circumvent oversight controls.

Answer: B

NEW QUESTION # 258
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