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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

SectionWeightObjectives
Corporate Governance and Ethics25%- Ethical culture and tone at the top
- Code of conduct and compliance programs
Internal Controls and Fraud Prevention25%- Internal control design and effectiveness
- Fraud detection and prevention controls
Fraud Risk Management and Deterrence25%- Monitoring and continuous improvement
- Fraud prevention strategies and programs
Fraud Prevention Framework25%- Fraud risk governance and oversight
- Fraud risk assessment processes

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q34-Q39):

NEW QUESTION # 34
Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?

Answer: A

Explanation:
ISA 240 (The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements) outlines the auditor's responsibility to assess and respond to the risk of material misstatement due to fraud. It does not impose a primary responsibility for fraud prevention and detection upon auditors--that responsibility lies with management (eliminating C). The standard also does not require auditors to actively raise fraud awareness within the organization (eliminating A), nor does it establish requirements for fraud risk management programs for management (eliminating D).


NEW QUESTION # 35
Risk management is focused on balancing the organization's___________with Its____________.

Answer: D

Explanation:
Focus of Risk Management:
Risk management seeks to balance the organization's risk appetite (the level of risk it is willing to accept) with its ability to achieve objectives.
Why D is Correct:
Effective risk management aligns the organization's risk tolerance with its strategic and operational goals to ensure sustainability and success.


NEW QUESTION # 36
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines____________ as "a process, effected by an entity's board of directors, management, andother personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance."

Answer: C

Explanation:
COSO defines internal control as a process executed by an entity's board, management, and personnel to provide reasonable assurance about achieving objectives in operations, reporting, and compliance.


NEW QUESTION # 37
Which of the following scenarios is the MOST ACCURATE representation of organizational crime?

Answer: D

Explanation:
Organizational crime refers to offenses committed by organizations or their agents to benefit the organization, rather than the individual alone. Price-fixing by a group of floral companies to manipulate market conditions is a classic example of organizational crime. The other options-- fraudulent returns, theft of goods, and misuse of company funds--are examples of occupational or individual fraud, which benefit the perpetrator rather than the organization.


NEW QUESTION # 38
During a fraud risk assessment, the assessment team is seeking information on the ethical tone set by upper and middle managers. The team members determine that, for this task, they would like to get candid one-on-one feedback from employees away from their peers. Which of the following techniques would be most helpful for them to use in gathering this information?

Answer: D

Explanation:
The team seeks candid feedback on ethical tone, which requires a confidential and direct interaction method.


NEW QUESTION # 39
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