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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q195-Q200):

NEW QUESTION # 195
A fraud examiner discovers evidence suggesting possible misconduct by a senior executive. The examiner's supervisor instructs him to stop investigating and destroy his working papers. What should the examiner do?

A. Follow instructions because management has authority over the investigation
B. Preserve the evidence and act in accordance with professional and legal obligations
C. Destroy the working papers after documenting the request
D. Ignore the evidence because it involves senior management

Answer: B

Explanation:
Professional standards require fraud examiners to maintain integrity and exercise due professional care. Destroying evidence could compromise the investigation and potentially violate legal obligations. Evidence should be preserved and handled according to applicable policies and laws.

NEW QUESTION # 196
Harry is an internal auditor with ABC Company. Harry's supervisor, the chief audit executive (CAE), is the fraud risk assessment sponsor and has tasked Harry with drafting an email communication regarding ABC's upcoming fraud risk assessment process. Which of the following is a best practice that Harry should implement?

A. Harry should keep the communication private and only share it with executive management.
B. Harry's communication should be sent to the entire staff from his own email address.
C. Harry should find a generic template to use as the primary communication to the entire staff.
D. Harry's communication should encourage employees to participate in the assessment process.

Answer: D

NEW QUESTION # 197
Which of the following Is NOT considered a conflict of Interest that Is prohibited under the ACFE Code of Professional Ethics?

A. Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
B. Accepting an assignment to secretly infiltrate the fraud examiner's employing organization and transmit inside information to another party
C. Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner's ownership interest is disclosed
D. Undertaking engagements for both sides in a case of an alleged product substitution scheme

Answer: C

Explanation:
Fraud examiners must avoid situations that compromise their objectivity, independence, or professional duties.
Disclosure of ownership does not eliminate the conflict of interest if it could impair objectivity.

NEW QUESTION # 198
Which of the following is TRUE regarding an organization's ethics program?

A. An ethics program should avoid addressing rewards for ethical behavior and sanctions for unethical behavior
B. Having a written ethics policy is sufficient to communicate management's ethical philosophy and serve as a comprehensive ethics program
C. To be most effective, access to the organization's ethics policy should be restricted to external parties such as vendors and customers
D. In designing the ethics program, management should consider how stakeholders throughout the organization define success

Answer: D

Explanation:
For an ethics program to be effective, management must integrate the organization's ethical principles with the perceptions and expectations of stakeholders. By considering how stakeholders define success,the organization can design an ethics program that aligns with its values and operational goals. This inclusive approach promotes adherence to ethical standards and fosters a positive ethical culture within the organization. Merely having a written policy or restricting access to it does not ensure effectiveness.

NEW QUESTION # 199
Mary is charged with implementing a fraud reporting program on behalf of her organization.
Which of the following is a best practice that Mary should follow to ensure that the program is successful?

A. Mary should inform employees that they will be held accountable for reporting tips that cannot be verified.
B. Mary should inform employees that they are required to report any information about potential fraud directly and only to their immediate supervisor.
C. Mary should inform employees of the precise methods for reporting potential fraud, such as completing an online form.
D. Mary should inform employees that the names of all individuals who report misconduct will be shared with the organization's governing body and law enforcement.

Answer: C

Explanation:
For a fraud reporting program to be effective, employees must clearly understand how to use it.
Providing specific and user-friendly reporting methods, such as hotlines, email addresses, or online forms, increases accessibility and usage. Options A and D discourage reporting, while B limits it unnecessarily, especially in cases where supervisors may be involved.

NEW QUESTION # 200
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