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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q164-Q169):

NEW QUESTION # 164
Which of the following statements is MOST ACCURATE regarding an effective system of anti- fraud controls?

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

Answer: C

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 # 165
Which of the following statements about the fraud risk assessment process Is MOST ACCURATE?

A. The fraud risk assessment is most effective when management's influence on the process is limited
B. The fraud risk assessment can be effectively conducted by people inside or outside of the organization.
C. To ensure the independence of the team members, a fraud risk assessment must be conducted by a consultant or other external party.
D. If the individuals conducting the fraud risk assessment truly believe that fraud could not happen at the organization, then the assessment process should reflect that belief.

Answer: B

Explanation:
Conducting a Fraud Risk Assessment:
Both internal and external parties can effectively conduct fraud risk assessments.
Internal teams provide organizational insight, while external parties bring objectivity and specialized expertise.

NEW QUESTION # 166
A report by a fraud examiner is privileged from disclosure by anyone other than the client.

A. False
B. True

Answer: A

Explanation:
Privilege of Fraud Examination Reports:
Reports prepared by fraud examiners are not inherently privileged. Privilege depends on the legal framework, the purpose of the report, and whether the attorney-client privilege or work-product doctrine applies.
Without specific legal protection, reports may be subject to disclosure.
Conclusion: Fraud examination reports are not automatically privileged.

NEW QUESTION # 167
Which of the following Is FALSE regarding a fraud risk assessment?

A. The assessment team should consider how employees behave as part of Its assessment
B. The assessment should be used to improve employee fraud awareness.
C. The objective of the assessment is to provide an estimate of the organization's fraud losses.
D. The designation of an area as being high risk does not conclusively mean that fraud is occurring there.

Answer: C

Explanation:
Purpose of Fraud Risk Assessment:
Fraud risk assessment aims to identify vulnerabilities and evaluate the organization's exposure to fraud risks. It does not specifically provide an estimate of fraud losses.
Why D is Correct:
Estimating fraud losses is not a standard objective of fraud risk assessments; rather, they focus on identifying and mitigating risks.

NEW QUESTION # 168
XYZ. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that XYZ is subject to?

A. XYZ is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.
B. XYZ is required to comply with G20'OECD Principles of Corporate Governance.
C. XYZ is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions
D. XYZ must comply with the various laws and regulations in the countries in which it operates

Answer: D

Explanation:
Corporate Governance in Multinational Corporations:
Multinational corporations must adhere to the legal, regulatory, and governance frameworks of each jurisdiction in which they operate. These frameworks may vary significantly across countries.
Why A is Correct:
It reflects the reality of multinational operations, where governance compliance must align with local laws and regulations.

NEW QUESTION # 169
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