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

Section	Objectives
Topic 1: Fraud Prevention and Deterrence	- Corporate Governance 1. Internal controls 2. Roles and responsibilities 3. Board oversight - Ethics 1. Ethical considerations in fraud examination - Management's Role 1. Building anti-fraud programs 2. Fraud risk assessment - Auditors' Role 1. Fraud detection responsibilities

Section

Objectives

Topic 1: Fraud Prevention and Deterrence

- Corporate Governance

1. Internal controls
2. Roles and responsibilities
3. Board oversight

- Ethics

1. Ethical considerations in fraud examination

- Management's Role

1. Building anti-fraud programs
2. Fraud risk assessment

- Auditors' Role

1. Fraud detection responsibilities

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q74-Q79):

NEW QUESTION # 74
According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO).________Is
"a process.
effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance."

A. Fraud risk management
B. Internal control
C. Financial reporting
D. Operational risk assessment

Answer: B

Explanation:
* COSO Definition of Internal Control:
* COSO defines internal control as a process enacted by an entity's board, management, and personnel to provide reasonable assurance regarding objectives in operations, reporting, and compliance.
* Analysis of Options:
* A. Operational risk assessment: A component of internal control, not the overall process.
* C. Fraud risk management: Focuses specifically on fraud risks, a subset of internal control.
* D. Financial reporting: A specific objective addressed by internal control.
* Conclusion:The correct answer is internal control, as defined by COSO.
References:COSO Internal Control-Integrated Framework.

NEW QUESTION # 75
Adan, an internal auditor who works at BKY Co., is reviewing the auditing procedures for his company. He is specifically considering the ways BKY can proactively audit for fraud. Which of the following is TRUE regarding the use of proactive fraud auditing procedures at BKY?

A. Fraud audit procedures should be designed to avoid an element of surprise.
B. Analytical review of BKY's financial statements is the best way to uncover small frauds that might be missed by other detection methods.
C. Fraud assessment questioning techniques are most effectively used as part of the normal audit process.
D. Auditors should avoid asking questions such as, "Has anyone ever asked you to do something unethical?" as part of their audits, as this can limit employees' willingness to communicate.

Answer: C

NEW QUESTION # 76
Which of the following statements is FALSE?

A. Most experts agree that it is harder to detect frauds than to prevent them
B. Conducting covert audits is among the most effective fraud prevention methods
C. Controls are not effective in preventing theft and fraud If those at risk do not know of their presence
D. Educating employees about company hotlines and reporting programs increases their perception of detection

Answer: C

NEW QUESTION # 77
Which of the following is included in the G20/OECD Principles of Corporate Governance?

A. A request that governments implement effective internal controls to support good corporate governance practices.
B. An emphasis on the importance of timely, accurate, and transparent disclosure mechanisms.
C. A requirement for a corporate governance framework that protects the exercise of management's rights.
D. Support for the equal treatment of all members of an organization's governing body.

Answer: A

NEW QUESTION # 78
Devon, an employee at Tilly Corp., repeatedly demonstrates a negative attitude when working with other departments. To address this behavior, Devon's manager tells him that he is no longer allowed to lead cross-departmental projects. This is an example of what type of behavioral response?

A. None of the above
B. Punishment
C. Positive reinforcement
D. Negative reinforcement

Answer: B

Explanation:
This scenario is an example of punishment. Punishment involves introducing a consequence (in this case, the loss of responsibility for cross-departmental projects) to discourage undesirable behavior. The manager uses this approach to address Devon's negative attitude and to promote better cooperation with other departments in the future.

NEW QUESTION # 79
......

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