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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q277-Q282):

NEW QUESTION # 277
Jones, an accounting manager for a software company, wants to improve her team's adherence to the company's formal accounting policies and procedures and reduce the number of process exceptions they experience. According to behaviorist theories, which of the following options would be the most effective way for Jones to condition her staff to follow the company's formal accounting processes?

A. Offer a bonus to anyone who experiences no process exceptions for ninety days-
B. Demote employees who do not adhere to the expected processes.
C. Publicly call out and criticize employees who deviate from the formal processes.
D. Take away a day of paid time off for each process exception.

Answer: A

Explanation:
Behaviorist Theories in Conditioning:
Positive reinforcement, such as offering bonuses, is more effective than punishment in encouraging adherence to policies and reducing deviations.
Employees are more likely to repeat behaviors that are rewarded.
Why C is Correct:
This approach aligns with behaviorist principles, fostering compliance through incentives rather than fear or criticism, which could negatively impact morale.

NEW QUESTION # 278
Risk management is focused on balancing the organization's___________with Its____________.

A. Regulatory requirements, risk appetite
B. Risk appetite, ability to meet its objectives
C. Objectives; resources
D. Internal controls; financial reporting model

Answer: B

Explanation:
Focus of Risk Management:
Risk management seeks to balance the organization's risk appetite (the level of risk it is willing to accept) with its ability to achieve objectives.
Why D is Correct:
Effective risk management aligns the organization's risk tolerance with its strategic and operational goals to ensure sustainability and success.

NEW QUESTION # 279
Alicia, a government auditor, is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions. Which of the following is TRUE regarding Alicia's consideration of fraud during this engagement?

A. If Alicia identifies fraud during the audit engagement, she must immediately withdraw from the engagement.
B. Alicia should focus on potential fraud and does not need to consider the possibility of abuse or other misconduct during the audit engagement.
C. Alicia must comply with the requirements found in International Standard on Auditing 240 as they apply to both private- and public-sector audits.
D. In conducting the audit, Alicia's objectives are likely narrower than those of a private-sector financial statement audit.

Answer: C

Explanation:
Government auditors, like their private-sector counterparts, must adhere to International Standard on Auditing (ISA) 240, which provides guidance on the auditor's responsibilities related to fraud.
This standard applies to both private- and public-sector audits, emphasizing the importance of addressing risks of material misstatement due to fraud. Alicia must carefully evaluate fraud risks and incorporate relevant procedures, as mandated by ISA 240, ensuring a comprehensive audit approach.

NEW QUESTION # 280
An organization conducts ethics training only during new-hire orientation and never again. Which statement is MOST accurate?

A. One-time training is generally sufficient
B. Ethics training increases fraud risk
C. Training is unnecessary if a hotline exists
D. Ongoing ethics communication and reinforcement are more effective

Answer: D

Explanation:
Ethical expectations should be reinforced continuously. Regular training, communication, and leadership involvement help employees recognize risks, understand reporting procedures, and maintain awareness of organizational values over time.

NEW QUESTION # 281
At the end of an engagement, a Certified Fraud Examiner (CFE) might provide a report to their client about the information uncovered during the investigation. Which of the following statements is TRUE regarding the potential privilege that applies to this report?

A. A fraud examiner's report is privileged from disclosure by anyone other than the client.
B. A fraud examiner's report is considered privileged information and is therefore protected from being legally demanded by outside parties.
C. A fraud examiner's report is only privileged from disclosure if the author is also a professional legal advisor.
D. A fraud examiner's report may be privileged from disclosure in certain circumstances, but it does not have an absolute legal privilege.

Answer: D

NEW QUESTION # 282
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