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| Section | Weight | Objectives |
|---|
| Topic 1: White-Collar Crime | 15–20% | - Legal prosecution and sanctions - Impact on organizations and society - Causal factors and opportunity structures - Definition and characteristics - Organizational vs occupational crime
|
| Topic 2: Fraud Prevention Programs | 15–20% | - Monitoring and continuous improvement - Communication and training - Designing prevention strategies
|
| Topic 3: Fraud Risk Assessment | 15–20% | - Assessment implementation and documentation - Risk identification methodologies - Risk analysis and prioritization
|
| Topic 4: Management's Fraud-Related Responsibilities | 5–10% | - Establishing anti-fraud policies - Reporting mechanisms - Oversight and accountability
|
| Topic 5: Professional Ethics | 5–10% | - Conflicts of interest and integrity - ACFE Code of Professional Ethics - Ethical decision-making
|
| Topic 6: Corporate Governance | 20–25% | - Roles of board, management, auditors - Internal control systems - Governance frameworks and principles
- 1. OECD guidelines
- 2. Treadway Commission (COSO)
|
| Topic 7: Understanding Criminal Behavior | 5–10% | - Behavior modification principles - Theories of crime causation
- 1. Rational choice and routine activities theory
- 2. Differential association theory
- 3. Social control and social learning theory
|
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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q89-Q94):
NEW QUESTION # 89
According to the 2020 Report to the Nations.___________schemes ate the MOST COMMON form of occupational fraud, while_________schemes are the MOST COSTLY form of occupational fraud.
- A. Asset misappropriation; corruption
- B. Asset misappropriation: financial statement fraud
- C. Financial statement fraud: corruption
- D. Corruption, asset misappropriation
Answer: B
Explanation:
Findings from the 2020 Report to the Nations:
Asset misappropriation:Most common form of occupational fraud (e.g., theft of cash or inventory).
It is frequent but less costly.
Financial statement fraud:Most costly, involving significant manipulation of financial data.
NEW QUESTION # 90
The existence of many specialized departments within a company generally decreases the overall risk of fraud within the organization.
Answer: A
Explanation:
Impact of Specialized Departments on Fraud Risk:While specialization improves operational efficiency, it can also create silos, reducing oversight and coordination. This fragmentation may increase the overall fraud risk.
Key Considerations:
Fraud often occurs in areas where controls and communication are weak. Specialized departments may inadvertently facilitate fraud by isolating information.
Cross-departmental collaboration and centralized controls are essential to mitigate these risks.
NEW QUESTION # 91
Which of the following is LEAST LIKELY to be a factor that directors and management should consider when developing a corporate governance framework for an organization?
- A. The organization's cultural environment
- B. The organization's ethical environment
- C. The organization's legal and regulatory environment
- D. The organization's physical operating environment
Answer: D
NEW QUESTION # 92
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. Reporting known incidents of fraud to law enforcement
- D. Maintaining a policy that allows employees one warning before they are terminated for committing fraud
Answer: C
Explanation:
The Fraud Prevention Programs chapter states that management's handling of known fraud incidents is an important part of the organization's anti-fraud program. The manual explains that a company must make clear it has zero tolerance for fraud and that failing to punish perpetrators consistently makes the fraud prevention program less effective, if not useless. It further notes that having a public record of the incident can be important and specifically says that reporting known incidents of fraud to law enforcement can be an effective step in making the organization's zero- tolerance stance clear. This approach reinforces deterrence, demonstrates seriousness, and supports consistent consequences. Therefore, among the listed choices, reporting known incidents of fraud to law enforcement is the most effective response.
NEW QUESTION # 93
As part of its anti-fraud program, Elm Company is outlining the responsibilities of different stakeholders. Who is ultimately responsible for ensuring the effectiveness of the organization's anti- fraud program?
- A. The compliance function
- B. Management
- C. Internal auditors
- D. Forensic accountants
Answer: B
Explanation:
Management is ultimately responsible for ensuring the effectiveness of the organization's anti- fraudprogram. They set the tone at the top, establish internal controls, and ensure that the necessary resources and oversight mechanisms are in place to prevent and detect fraud. Other stakeholders, such as auditors and compliance officers, provide support but do not bear ultimate responsibility.
NEW QUESTION # 94
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