CFE-Fraud-Prevention-and-Deterrence Questions and Answers: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam & CFE-Fraud-Prevention-and-Deterrence Practice Test

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

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q12-Q17):

NEW QUESTION # 12
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: C


NEW QUESTION # 13
Which of the following factors would be MOST HELPFUL for directors and management to consider when developing a corporate governance framework for an organization?

Answer: A

Explanation:
A corporate governance framework must be built around the environment in which the organization operates, especially its legal and regulatory obligations. Governance defines oversight responsibilities for the organization's direction, operations, performance, accountability, and transparency. Directors and management must consider laws, regulations, listing requirements, industry rules, stakeholder rights, disclosure obligations, and enforcement expectations. The number of customers, technical infrastructure, and physical operating environment can affect operations, but they are less central to designing the governance framework itself. A strong governance framework should support fairness, responsibility, transparency, and accountability while aligning with the applicable legal and regulatory system. Therefore, when developing a corporate governance framework, the organization's legal and regulatory environment is the most helpful factor among the choices.


NEW QUESTION # 14
Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To MOST EFFECTIVELY reinforce an anti-fraud culture, management should:

Answer: C

Explanation:
* Tone at the Top:
* Management must set a strong example by adhering to the same ethical standards as employees.
* Visible adherence builds trust and reinforces an anti-fraud culture.
* Analysis of Other Options:
* A. Checklist of initiatives: Helpful but insufficient by itself.
* B. Dissuading challenges: This is counterproductive, as it discourages transparency and accountability.
* D. All of the above: Incorrect, as Option B is detrimental to an anti-fraud culture.
* Conclusion:Visibly adhering to ethics policies is the most effective action.
References:ACFE resources on fostering an ethical organizational culture.


NEW QUESTION # 15
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?

Answer: D


NEW QUESTION # 16
_____________Is the criminological theory that presents crime as a conscious decision that can be deterred by reducing opportunities for criminal activity and increasing the personal risk to an Individual of being caught and punished.

Answer: D


NEW QUESTION # 17
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