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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q230-Q235):

NEW QUESTION # 230
To address an employee's consistent failure to meet deadlines, a manager removes the employee's ability to work from home This is an example of what type of behavioral response?

A. Punishment
B. None of the above
C. Negative reinforcement
D. Positive reinforcement

Answer: A

Explanation:
Understanding Behavioral Responses:
Punishment:Involves removing a privilege or applying a negative consequence to decrease undesired behavior.
Removing the ability to work from home penalizes the employee for failing to meet deadlines.

NEW QUESTION # 231
Which of the following statements regarding monitoring employees for warning signs of fraud is MOST ACCURATE?

A. Managers should be instructed that it is a violation of employee privacy rights to monitor employees for behaviors that are indicative of fraud.
B. Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.
C. Employees should be made aware that management is watching for unexplained lifestyle and behavioral changes that might indicate fraudulent conduct.
D. An increase in employee wealth is always a sign of fraud that should be investigated.

Answer: C

Explanation:
The ACFE manual states:
"Employees should be trained to recognize and report signs such as unexplained lifestyle changes or behavioral red flags, and they should be informed that management will be watching for such indicators."

NEW QUESTION # 232
Which of the following statements is TRUE according to rational choice theory?

A. Crime can be deterred by increasing the potential for financial gain for the perpetrator.
B. Crime can be deterred by decreasing the personal risk to potential perpetrators.
C. Crime originates from the application of excessive pressure and influence on the perpetrator by external sources.
D. Crime originates from a rational and conscious decision made by the perpetrator in order to receive an intended benefit.

Answer: D

Explanation:
Rational choice theory posits that criminal behavior is a result of deliberate decision-making.
According to the ACFE manual:
"Rational choice theory assumes that individuals weigh the expected benefits of committing a crime against the possible consequences. If the perceived benefits outweigh the perceived risks, the individual may choose to offend."

NEW QUESTION # 233
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. Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods
C. Fraud assessment questioning techniques are most appropriately used as part of the normal audit process
D. Implementing proactive fraud audit procedures demonstrates management's intention to aggressively look for possible fraudulent conduct

Answer: B

Explanation:
Proactive Fraud Auditing Procedures:
Analytical reviews are effective for identifying large or unusual trends and anomalies, not necessarily small frauds.

NEW QUESTION # 234
Which of the following statements is FALSE?

A. Conducting covert audits is among the most effective fraud prevention methods
B. Most experts agree that it is harder to detect frauds than to prevent them
C. Educating employees about company hotlines and reporting programs increases their perception of detection
D. Controls are not effective in preventing theft and fraud If those at risk do not know of their presence

Answer: A

Explanation:
Fraud Prevention Methods:
Prevention strategies often focus on education, awareness, and robust controls rather than covert methods. While covert audits can detect fraud, they are not primarily preventive.
Why D is False:
Covert audits are reactive and focused on identifying existing fraud, not preventing it.

NEW QUESTION # 235
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