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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q200-Q205):

NEW QUESTION # 200
Which of the following Is FALSE regarding proactive fraud auditing procedures?

A. Fraud audit procedures should be designed to incorporate an element of surprise
B. Fraud assessment questioning techniques are most appropriately used as part of the normal audit process
C. Implementing proactive fraud audit procedures demonstrates management's intention to aggressively look for possible fraudulent conduct
D. Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods

Answer: D

Explanation:
* Proactive Fraud Auditing Procedures:
* Analytical reviews are effective for identifying large or unusual trends and anomalies, not necessarily small frauds.
* Other tools, such as detailed transaction testing, are better suited for uncovering small frauds.
* Analysis of Other Options:
* A. Element of surprise: A key feature of fraud audits.
* C. Fraud assessment questioning: Valid as part of the audit process.
* D. Management's intentions: Proactive procedures signal a strong stance against fraud.
* Conclusion:Option B is false because analytical reviews are better at detecting significant anomalies rather than small frauds.

NEW QUESTION # 201
Which of the following statements is MOST ACCURATE regarding an effective system of anti-fraud controls?

A. It prioritizes implementing detective controls over preventive controls.
B. It deters fraudsters by increasing the perception that fraud will be detected.
C. It fully eliminates the risk of fraud by removing opportunities for misbehavior.
D. It focuses more on preventive controls than detective controls.

Answer: B

NEW QUESTION # 202
Which of the following criminological theories asserts that the three elements that have the most influence on crime are the availability of suitable targets, absence of capable guardians, and presence of motivated offenders?

A. Routine activities theory
B. Social control theory
C. Differential association theory
D. Rational choice theory

Answer: D

NEW QUESTION # 203
Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

A. Recognition of the importance of the role of stakeholders in corporate governance
B. A request that governments have in place an appropriate framework to support good corporate governance practices
C. Support for establishing stronger protection for foreign shareholders than for domestic shareholders
D. Guidance regarding appropriate board structures, responsibilities, and procedures

Answer: C

Explanation:
* Understanding G20/OECD Principles of Corporate Governance:These principles provide a framework to improve corporate governance worldwide. Key elements include board responsibilities, shareholder rights, equitable treatment, and stakeholder roles.
* Analysis of Options:
* A. Guidance on board structures: This is included in the principles to ensure effective governance and oversight.
* C. Framework for corporate governance: Governments are encouraged to create legal and regulatory frameworks supporting corporate governance.
* D. Stakeholder importance: Stakeholders' roles in governance are recognized, acknowledging their contribution to sustainable business practices.
* B. Stronger protection for foreign shareholders: The principles advocate for equitable treatment of all shareholders, not preferential treatment for any group.
* Conclusion:Option B contradicts the principle of equitable treatment, making it the correct answer.
References:G20/OECD Principles of Corporate Governance documentation.

NEW QUESTION # 204
Grace, a Certified Fraud Examiner (CFE), has accepted her first fraud examination engagement. Before beginning the investigation, she reviews the ACFE Code of Professional Ethics to ensure that her behavior will comply with the Code. Which of the following actions is explicitly prohibited by the ACFE Code of Professional Ethics?

A. Participating in an activity with an undisclosed conflict of interest
B. Giving opinions regarding technical matters
C. Engaging in an activity that is legal within her jurisdiction
D. Providing conclusions based on discovered evidence

Answer: A

Explanation:
The ACFE Code of Professional Ethics explicitly prohibits CFEs from participating in activities that create undisclosed conflicts of interest. This ensures that the examiner's objectivity and independence remain intact throughout the investigation. While CFEs are allowed to provide professional opinions based on evidence and engage in legal activities, they must always disclose any potential conflicts of interest.

NEW QUESTION # 205
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