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

Section	Objectives
Topic 1: Fraud Prevention and Deterrence	- Fraud Risk Management 1. Fraud risk mitigation strategies 2. Fraud risk assessment process 3. Fraud risk identification and analysis - Fraud Culture and Ethics 1. Anti-fraud organizational culture 2. Ethical frameworks and professional standards 3. Whistleblowing mechanisms and reporting channels - Fraud Risk Monitoring and Evaluation 1. Evaluation of fraud prevention programs 2. Ongoing monitoring of fraud risks - Fraud Prevention Fundamentals 1. Principles of fraud prevention and deterrence 2. Objectives of anti-fraud programs - Fraud Schemes and Red Flags 1. Occupational fraud schemes 2. Fraud warning signs and red flags 3. Financial statement fraud indicators - Anti-Fraud Controls and Governance 1. Corporate governance and oversight 2. Fraud prevention policies and procedures 3. Internal controls to deter fraud

Section

Objectives

Topic 1: Fraud Prevention and Deterrence

- Fraud Risk Management

1. Fraud risk mitigation strategies
2. Fraud risk assessment process
3. Fraud risk identification and analysis

- Fraud Culture and Ethics

1. Anti-fraud organizational culture
2. Ethical frameworks and professional standards
3. Whistleblowing mechanisms and reporting channels

- Fraud Risk Monitoring and Evaluation

1. Evaluation of fraud prevention programs
2. Ongoing monitoring of fraud risks

- Fraud Prevention Fundamentals

1. Principles of fraud prevention and deterrence
2. Objectives of anti-fraud programs

- Fraud Schemes and Red Flags

1. Occupational fraud schemes
2. Fraud warning signs and red flags
3. Financial statement fraud indicators

- Anti-Fraud Controls and Governance

1. Corporate governance and oversight
2. Fraud prevention policies and procedures
3. Internal controls to deter fraud

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q143-Q148):

NEW QUESTION # 143
A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?

A. The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.
B. The objectives of the audit are likely narrower than those of a private-sector financial statement audit.
C. The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement
D. In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.

Answer: D

Explanation:
ISSAI Standards:
* The International Standards of Supreme Audit Institutions (ISSAI) require government auditors to consider fraud and abuse during financial audits. Abuse includes improper use of authority or resources, which may not always meet the legal threshold of fraud but still warrants attention.
Expanded Audit Scope:
* Unlike private-sector audits, public-sector audits often have broader objectives, requiring vigilance for misuse of public funds and resources.
Why A is Correct:
* Staying alert to abuse ensures comprehensive accountability, aligning with ISSAI's objectives.

NEW QUESTION # 144
Criminologist Charles McCaghy has slated that profit pressure is the single most compelling factor behind deviance by organizations

A. False
B. True

Answer: B

NEW QUESTION # 145
The existence of many specialized departments within a company generally decreases the overall risk of fraud within the organization

A. False
B. True

Answer: B

NEW QUESTION # 146
(Acme, Inc. is a publicly traded, multinational corporation. Which of the following statements is TRUE regarding the corporate governance requirements that Acme is subject to?)

A. Acme must comply with all corporate governance-related legislation in every jurisdiction in which it operates.
B. Acme is required to comply only with the corporate governance standards adopted by the company's board of directors.
C. Acme is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.
D. Acme is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions.

Answer: A

Explanation:
The Corporate Governance chapter explains that there is no single universal corporate governance law that applies to all organizations everywhere. Instead, governance requirements arise from a combination of legislation, regulations, listing rules, and governance codes that vary by jurisdiction. The manual also notes that international principles, such as the G20/OECD Principles, are intended to work across different legal and regulatory frameworks, which reinforces that organizations operating in multiple countries may face multiple applicable governance regimes. A publicly traded multinational corporation therefore cannot rely solely on standards adopted by its own board, nor can it ignore governance rules because it operates internationally. The most accurate statement is that Acme must comply with the corporate governance-related legislation that applies in the jurisdictions where it operates.

NEW QUESTION # 147
Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?

A. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks
B. Tying employee compensation to reasonable organizational performance goals
C. Establishing loosely defined job descriptions that allow employees flexibility in their roles
D. Including ethics-based metrics as a component of performance evaluations

Answer: C

Explanation:
* Fraud Prevention Through Performance Management:Performance measurement and management programs can play a role in preventing fraud by ensuring accountability, setting ethical expectations, and reinforcing organizational goals.
* Analysis of Options:
* A. Ethics-based metrics: Encourages accountability and reduces fraud risks.
* B. Regular training: Ensures employees are competent, reducing errors and opportunities for fraud.
* D. Reasonable performance goals: Prevents pressure to commit fraud by setting realistic benchmarks.
* C. Loosely defined job descriptions: This creates ambiguity, reduces accountability, and increases the risk of fraud, making it ineffective.
* Conclusion:Option C is not an effective way to prevent fraud.

NEW QUESTION # 148
......

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