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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q211-Q216):

NEW QUESTION # 211
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 requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement
B. The objectives of the audit are likely narrower than those of a private-sector financial statement audit.
C. The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.
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 # 212
Glenda. an internal auditor, and Brldgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies. Glenda has just been told that she will be the lead on the company's fraud risk assessment. During the fraud risk assessment. Glenda should:

A. Confront Bridgette about the disagreements and discuss how they increase the department's risk of fraud.
B. Automatically designate the accounts receivable department as a high-risk area.
C. Have someone else perform the fraud risk assessment work related to the accounts receivable department's activities.
D. Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department.

Answer: C

Explanation:
Impartiality in Fraud Risk Assessment:
As the lead on the fraud risk assessment, Glenda must maintain objectivity and avoid the appearance of bias.
Her history of disagreements with Bridgette creates a potential conflict of interest, which could compromise the assessment's credibility.

NEW QUESTION # 213
Which of the following factors is the determining aspect of white-collar crime according to modern criminological studies?

A. Organizational opportunity
B. Social status
C. Educational background
D. Psychological temperament

Answer: A

NEW QUESTION # 214
An executive pressures accounting staff to accelerate revenue recognition near year-end to meet earnings targets. This situation primarily reflects which element of the Fraud Triangle?

A. Collusion
B. Pressure
C. Opportunity
D. Rationalization

Answer: B

Explanation:
Pressure often arises from financial expectations, performance goals, compensation incentives, or market demands. The desire to meet earnings targets is a common motivator behind financial statement fraud schemes.

NEW QUESTION # 215
Which of the following is a best practice when assembling a fraud risk assessment team?

A. Team members should have experience in eliciting information.
B. The team should include only external sources.
C. Team members should all have similar skills and perspectives.
D. The size of the team should be limited to four individuals.

Answer: A

NEW QUESTION # 216
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