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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Fraud Prevention and Deterrence	25%	- Internal control systems and evaluation - Monitoring, auditing, and continuous improvement - Ethics and corporate governance - Fraud prevention programs and frameworks - Anti-fraud policies and procedures - Whistleblowing and reporting mechanisms - Fraud risk assessment - Fraud deterrence strategies and controls - Fraud risk governance and organizational culture

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q66-Q71):

NEW QUESTION # 66
Which of the following controls would MOST effectively reduce the risk of fictitious vendors being added to the accounting system?

A. Independent review of vendor setup requests with supporting documentation
B. Increasing employee bonuses
C. Encrypting vendor payment files
D. Annual inventory counts

Answer: A

Explanation:
Independent verification of vendor creation helps ensure that new vendors are legitimate.
Supporting documentation, management approval, and validation procedures reduce the risk that employees can establish shell companies or fictitious vendors.

NEW QUESTION # 67
Employee support programs are a fraud prevention mechanism that addresses which leg of the Fraud Triangle

A. Lack of integrity
B. Pressure
C. Opportunity
D. Rationalization

Answer: B

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 # 68
Which of the following is BEST classified as a type of external fraud risk?

A. Embezzling incoming customer payments
B. Collusion between contractors
C. Adding ghost employees to payroll
D. Reporting revenue in the wrong period

Answer: B

Explanation:
Collusion between contractors is an example of external fraud risk because it involves external parties conspiring to defraud the organization. The other options describe internal fraud risks, such as actions committed by employees within the organization.

NEW QUESTION # 69
According to International Organization for Standardization (ISO) 31000:2018, an organization's risk management program should be proportionate to the organization's specific operations and objectives.

A. True
B. False

Answer: A

Explanation:
ISO 31000:2018 Guidelines:
This standard emphasizes that a risk management framework should align with the organization's size, complexity, objectives, and operations to ensure effectiveness and relevance.
Why A is Correct:
Proportionality ensures that resources are allocated efficiently, addressing risks that directly impact the organization's goals while avoiding overcomplication.

NEW QUESTION # 70
Which of the following statements is MOST ACCURATE regarding an organization's fraud risk management program?

A. Punishment for intentional noncompliance should be individualized based on the offender's personal circumstances.
B. Formal sanctions for intentional noncompliance should be kept private and only shared if a party absolutely needs to know.
C. All employees at the organization should be responsible for monitoring compliance with the program.
D. Systems to monitor and identify breaches in compliance must be included in the fraud risk management program.

Answer: D

NEW QUESTION # 71
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