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| Section | Weight | Objectives |
|---|
| Fraud Prevention and Deterrence | 25% | - Ethics and corporate governance - Fraud deterrence strategies and controls - Fraud prevention programs and frameworks - Fraud risk assessment - Internal control systems and evaluation - Fraud risk governance and organizational culture - Monitoring, auditing, and continuous improvement - Anti-fraud policies and procedures - Whistleblowing and reporting mechanisms
|
>> ACFE CFE-Fraud-Prevention Latest Exam Question <<
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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q71-Q76):
NEW QUESTION # 71
Employee support programs are a fraud prevention mechanism that addresses which leg of the Fraud Triangle
- A. Rationalization
- B. Lack of integrity
- C. Pressure
- D. Opportunity
Answer: C
Explanation:
Fraud Triangle and Employee Support Programs:
The Fraud Triangle identifiespressure,opportunity, andrationalizationas the key elements contributing to fraud.
Employee support programs help alleviate pressures, such as financial stress or workplace dissatisfaction, which could lead employees to commit fraud.
NEW QUESTION # 72
Why is vendor due diligence important in anti-fraud programs?
- A. It helps identify fraud, corruption, and compliance risks before engagement
- B. It eliminates contract negotiations
- C. It replaces procurement controls
- D. It guarantees vendor profitability
Answer: A
Explanation:
Vendor due diligence evaluates ownership, reputation, sanctions exposure, legal history, and financial stability. Identifying high-risk third parties before engagement helps prevent fraud, corruption, regulatory violations, and reputational damage.
NEW QUESTION # 73
Which of the following Is NOT considered a conflict of Interest that Is prohibited under the ACFE Code of Professional Ethics?
- A. Undertaking engagements for both sides in a case of an alleged product substitution scheme
- B. Accepting an assignment to secretly infiltrate the fraud examiner's employing organization and transmit inside information to another party
- C. Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
- D. Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner's ownership interest is disclosed
Answer: D
Explanation:
Fraud examiners must avoid situations that compromise their objectivity, independence, or professional duties.
Disclosure of ownership does not eliminate the conflict of interest if it could impair objectivity.
NEW QUESTION # 74
An employee submits reimbursement requests for personal expenses disguised as business expenses. This scheme is BEST classified as:
- A. Billing fraud
- B. Financial statement fraud
- C. Expense reimbursement fraud
- D. Corruption
Answer: C
Explanation:
Expense reimbursement fraud occurs when employees seek payment for fictitious, inflated, or personal expenses. Such schemes exploit trust in the expense approval process and often involve falsified documentation.
NEW QUESTION # 75
Gregory, an internal auditor, and Brandon, the company's purchasing manager, have had several heated disagreements over purchasing procedures and policies. Gregory has just been told that he will be the lead on the company's fraud risk assessment. During the fraud risk assessment.
Gregory should:
- A. Automatically designate the purchasing function as a high-risk area.
- B. Have someone else perform the fraud risk assessment work related to the purchasing function
- C. Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.
- D. Confront Brandon about the disagreements and discuss how they increase the organization's risk of fraud-
Answer: C
Explanation:
Fraud Risk Assessment Objectivity:
The assessment must remain unbiased, but any prior disagreements or conflicts may highlight areas where policies or procedures are unclear, increasing fraud risks.
Why C is Correct:
Incorporating disagreements provides context to evaluate risks objectively, ensuring that all relevant factors are considered without bias.
NEW QUESTION # 76
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