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| Section | Weight | Objectives |
|---|
| Fraud Prevention and Deterrence | 25% | - Anti-fraud policies and procedures - Fraud risk assessment - Internal control systems and evaluation - Fraud risk governance and organizational culture - Fraud deterrence strategies and controls - Monitoring, auditing, and continuous improvement - Fraud prevention programs and frameworks - Ethics and corporate governance - Whistleblowing and reporting mechanisms
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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q140-Q145):
NEW QUESTION # 140
Which of the following is NOT a purpose served by a professional organization's code of conduct?
- A. It serves as a reference and benchmark for ethical guidance
- B. It facilitates practical enforcement and profession-wide Internal discipline.
- C. It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles
- D. It replaces the need for individuals to consult their own conscience.
Answer: D
Explanation:
A professional code of conduct serves as a guideline for ethical behavior, provides benchmarks for decision-making, and facilitates enforcement within the profession.
It does not replace the personal responsibility to exercise individual judgment and consult one's conscience.
NEW QUESTION # 141
Eliece, a Certified Fraud Examiner (CFE), and Jewel are employees at Silver Inc. Jewel informs Eliece that she has knowledge of a potential financial statement fraud but does not feel comfortable sharing this information unless Eliece can promise that she will keep it confidential.
How should Eliece respond?
- A. Eliece should encourage Jewel to report the information to law enforcement because she cannot agree to Jewel's request.
- B. Eliece should promise Jewel that she will keep the information confidential even though she knows that she will likely be unable to keep that promise.
- C. Eliece should tell Jewel that she will try to keep the information as confidential as possible but she might have an ethical obligation to inform their employer.
- D. Eliece should immediately contact management at Silver Inc. to provide information about her conversation with Jewel and her request for confidentiality.
Answer: C
Explanation:
CFEs must act ethically and responsibly when handling sensitive information. Eliece should inform Jewel that she will try to maintain confidentiality but must adhere to professional and ethical obligations, which may require disclosing the information to appropriate parties such as her employer or relevant authorities. This balanced response encourages transparency while maintaining ethical standards.
NEW QUESTION # 142
Which of the following Is NOT Included In Ihe five fraud risk management principles described In Fraud Risk Management Guide, a joint publication by COSO and the ACFE?
- A. Developing one-time evaluations for each fraud risk management principle
- B. Deploying preventive and detective fraud control activities to mitigate fraud risk
- C. Communicating the expectations of those governing the fraud risk management program
- D. Performing comprehensive fraud risk assessments to identify specific fraud schemes
Answer: A
Explanation:
Fraud risk management requires ongoing evaluations, not one-time assessments, to adapt to evolving risks.
NEW QUESTION # 143
Which of the following principles of corporate governance pertains to the duty of the organization to act in the best interest of society?
- A. Transparency
- B. Accountability
- C. Responsibility
- D. Fairness
Answer: C
Explanation:
Principle Overview:
Responsibility pertains to the duty of an organization to act in the best interest of society, ensuring sustainable and ethical practices that benefit all stakeholders, including employees, customers, and the environment.
Corporate Governance Definition:
Corporate governance frameworks emphasize corporate responsibility as a key pillar for maintaining societal trust and long-term value creation.
Why Responsibility is Correct:
While transparency, fairness, and accountability are essential, responsibility uniquely emphasizes societal interests and ethical conduct.
NEW QUESTION # 144
An organization conducts ethics training only during new-hire orientation and never again. Which statement is MOST accurate?
- A. Training is unnecessary if a hotline exists
- B. Ethics training increases fraud risk
- C. One-time training is generally sufficient
- 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 # 145
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