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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q144-Q149):

NEW QUESTION # 144
Which of the following is a TRUE statement regarding the role of a well-designed organizational structure as part of an anti-fraud program?

A. Effectively documenting and communicating the organizational structure to all employees can help prevent fraud.
B. Displaying organizational and departmental hierarchies can help fraudsters select their targets.
C. Formally establishing and communicating the proper flow of information in an organization can hinder its fraud prevention initiatives.
D. A confused organizational structure makes it harder for a fraudster to perpetrate and conceal their misdeeds.

Answer: A

Explanation:
A clearly defined organizational structure contributes to accountability and reduces fraud risks.
According to the ACFE manual:
"An effectively documented and communicated structure helps prevent fraud by providing clear lines of authority and responsibility and ensuring appropriate oversight."

NEW QUESTION # 145
Which of the following criminological theories states that individuals make a conscious decision to commit a crime and that crime can be deterred by reducing opportunities for criminal activity and increasing an individual's personal risk of being caught and punished?

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

Answer: C

Explanation:
Rational Choice Theory Overview:
This theory posits that individuals consciously weigh the benefits and risks of committing a crime and make calculated decisions to engage in criminal behavior if the perceived benefits outweigh the risks.
Deterrence Mechanism:
Crime can be deterred by reducing opportunities (e.g., strong internal controls) and increasing the likelihood of detection and punishment (e.g., effective monitoring systems).
Why C is Correct:
Rational choice theory explicitly addresses crime prevention through increased risks and reduced opportunities.

NEW QUESTION # 146
A company implements mandatory job rotation within its accounting department. What fraud risk benefit does this provide?

A. It helps expose irregularities when duties change hands
B. It discourages independent review
C. It increases opportunities for concealment
D. It eliminates all payroll fraud

Answer: A

Explanation:
Many fraud schemes require continuous control by the perpetrator. Job rotation introduces fresh oversight and increases the chance that unusual transactions, missing documentation, or manipulated records will be discovered.

NEW QUESTION # 147
Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

A. All of the above are violations.
B. Rodrigo. a CFE. uncovered several material Internal control deficiencies unrelated to the Kickback scheme he was Investigating. In his final report to management. Rodrigo included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.
C. Tom, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss. A year later, he received a court order to provide the client's file to the ordering court. Tom complied with the court order, even though he did not have the client's authorization to do so.
D. Vivian, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she was in a hurry to complete the investigation, she overlooked key items of evidence and ended up failing to uncover a major fraud scheme.

Answer: A

Explanation:
Ethical Standards:
Each scenario demonstrates a failure to meet the ethical and professional responsibilities outlined in the ACFE Code.
Conclusion: All scenarios represent violations of the ACFE Code of Professional Ethics.

NEW QUESTION # 148
Which of the following is a TRUE statement regarding the components of the Committee of Sponsoring Organizations of the Treadway Commission's COSO Internal Control--Integrated Framework the Framework?

A. The Framework identifies 12 components of internal control that must all be in place for the internal control system to be effective.
B. Determining the effectiveness of an organization's internal control system involves assessing whether the identified components meet minimum regulatory requirements.
C. Determining the effectiveness of an organization's internal control system involves assessing whether all of the identified components are operating together in an integrated manner.
D. Ethical culture is one of the primary components of internal control identified in the Framework.

Answer: C

Explanation:
The manual explains that COSO's Internal Control--Integrated Framework contains five components of internal control: control environment, risk assessment, control activities, information and communication, and monitoring. It then states that the effectiveness of internal controls can be determined by assessing whether each of the five components is in place and functioning effectively and whether the five components are operating together in an integrated manner. That language directly supports option B. Ethical culture is important, but it is not listed as one of the five primary COSO components. Likewise, the framework does not define effectiveness simply by reference to minimum regulatory requirements, and it does not identify 12 components. Accordingly, option B is the accurate statement under the manual.

NEW QUESTION # 149
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