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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Corporate Governance and Ethics	25%	- Ethical culture and tone at the top - Code of conduct and compliance programs
Topic 2: Fraud Prevention Framework	25%	- Fraud risk governance and oversight - Fraud risk assessment processes
Topic 3: Fraud Risk Management and Deterrence	25%	- Monitoring and continuous improvement - Fraud prevention strategies and programs
Topic 4: Internal Controls and Fraud Prevention	25%	- Fraud detection and prevention controls - Internal control design and effectiveness

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q222-Q227):

NEW QUESTION # 222
Timothy, a new Certified Fraud Examiner (CFE), has been tasked with his first fraud examination engagement. To exercise appropriate professional skepticism as he conducts the engagement, Timothy should:

A. Form the engagement hypothesis without consideration for the nature of the assignment.
B. Begin the engagement with the belief that no fraud has occurred.
C. Maintain professional skepticism that can only be dispelled by evidence.
D. Maintain a skeptical attitude throughout the entire engagement even if the evidence shows no signs of fraudulent activity.

Answer: D

NEW QUESTION # 223
Which of the following statements is MOST ACCURATE regarding an effective system of anti- fraud controls?

A. It reduces the risk of fraud but does not completely eliminate it.
B. It focuses more on detective controls than preventive controls.
C. It decreases a potential fraudster's belief that misbehavior will be detected.
D. It prioritizes implementing preventive controls over detective controls.

Answer: A

Explanation:
The manual states that no system of internal controls can fully eliminate the risk of fraud. Even so, well-designed and effective internal controls can greatly reduce an organization's vulnerability to fraud by lowering opportunities and increasing the perception of detection. This means an anti- fraud control system is highly valuable, but it is not absolute. The manual does not say that preventive controls should always be prioritized over detective controls or vice versa; rather, both play important and complementary roles. It also specifically says effective controls increase, not decrease, the perception that misconduct will be detected, which is a key deterrent to potential fraudsters. Therefore, the most accurate statement is that an effective system of anti-fraud controls reduces risk but does not completely eliminate it.

NEW QUESTION # 224
Which of the following is BEST classified as a type of external fraud risk?

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

Answer: C

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 # 225
Employees should be kept unaware that management is watching for lifestyle and behavior changes In staff members that might indicate fraud.

A. False
B. True

Answer: A

Explanation:
Management's Role in Fraud Monitoring:
Employees should be aware that management monitors lifestyle and behavior changes.
Transparency discourages fraudulent behavior by reinforcing accountability.
Effect of Transparency:
Awareness of monitoring helps maintain a culture of ethical behavior and reduces the likelihood of fraud.
Conclusion: The statement is false because employees should know that management is vigilant about potential fraud indicators.

NEW QUESTION # 226
Which of the following statements regarding recommended vendor due diligence procedures is MOST ACCURATE?

A. An organization should include a clause in the contract requiring the vendor to report any misconduct before entering into an agreement with them.
B. An organization should subject vendors to an internal audit conducted by the organization's own auditors before agreeing to do business with them.
C. An organization should avoid revealing that it is seeking information about potential vendors prior to starting a relationship with them.
D. An organization should request that new vendors fill out a questionnaire about their background immediately after signing a contract with them.

Answer: A

Explanation:
Including a clause requiring vendors to report misconduct demonstrates a commitment to transparency and ethical standards.
This measure also ensures accountability and provides the organization with critical information about potential issues.

NEW QUESTION # 227
......

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