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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q225-Q230):

NEW QUESTION # 225
According to ACFE research, which of the following is TRUE regarding prosecutions of white- collar criminals?

A. The most common internal response to a substantiated fraud case is to terminate the employee.
B. Only a small percentage of perpetrators are punished when an organization handles a fraud case internally.
C. The primary reason that organizations decline to prosecute fraud cases is a lack of evidence.
D. Most fraud cases are only handled internally and are not referred to law enforcement for prosecution.

Answer: A

Explanation:
The ACFE has found that terminating the employee involved in fraud is the most common internal response to substantiated cases. While many fraud cases are handled internally without being referred to law enforcement, this is often due to concerns such as reputational damage or cost considerations rather than a lack of evidence.

NEW QUESTION # 226
Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?

A. Establishing loosely defined job descriptions that allow employees flexibility in their roles
B. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks
C. Including ethics-based metrics as a component of performance evaluations
D. Tying employee compensation to reasonable organizational performance goals

Answer: B

Explanation:
Fraud Prevention Through Performance Management:Performance measurement and management programs can play a role in preventing fraud by ensuring accountability, setting ethical expectations, and reinforcing organizational goals.

NEW QUESTION # 227
Terrel, a Certified Fraud Examiner (CFE), unknowingly violates the law one night. Which of the following statements about the ACFE Code of Professional Ethics is TRUE?

A. This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel knew the conduct was illegal.
B. This conduct would not be a violation of the ACFE Code of Professional Ethics under any circumstances.
C. This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel is arrested.
D. This conduct would be a violation of the ACFE Code of Professional Ethics.

Answer: D

NEW QUESTION # 228
Pieter, a manager at Solox Corp., oversees the fraud training for the organization's employees.
He is reviewing the training for the coming year. Which of the following actions should Pieter take to ensure that Solox's employee anti-fraud education program is effective?

A. Restrict training to formal live, in-person sessions required of all full-time, lower-level employees.
B. Require the training to only be presented by organizational executives or anti-fraud professionals.
C. Include common characteristics that lead individuals to commit fraud.
D. Include detailed descriptions of the organization's anti-fraud controls.

Answer: C

NEW QUESTION # 229
The objective of anti-fraud controls is to:

A. Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk
B. Completely eliminate residual fraud risk
C. Completely eliminate inherent fraud risk.
D. Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.

Answer: A

Explanation:
Fraud Risk Reduction Objectives:
Inherent fraud risk:The risk present before any controls are applied.
Residual fraud risk:The remaining risk after controls have been implemented.
Why D is Correct:
The goal of anti-fraud controls is to minimize residual risk to acceptable levels, recognizing that complete elimination of risk is unattainable.

NEW QUESTION # 230
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