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| Section | Weight | Objectives |
|---|
| Topic 1: Fraud Prevention and Deterrence | 25% | - Fraud risk governance and organizational culture - Anti-fraud policies and procedures - Ethics and corporate governance - Fraud prevention programs and frameworks - Fraud deterrence strategies and controls - Monitoring, auditing, and continuous improvement - Fraud risk assessment - Whistleblowing and reporting mechanisms - Internal control systems and evaluation
|
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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q123-Q128):
NEW QUESTION # 123
According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO).________Is "a process. effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance."
- A. Internal control
- B. Fraud risk management
- C. Financial reporting
- D. Operational risk assessment
Answer: A
Explanation:
COSO defines internal control as a process enacted by an entity's board, management, and personnel to provide reasonable assurance regarding objectives in operations, reporting, and compliance.
NEW QUESTION # 124
Employees should be kept unaware that management is watching for lifestyle and behavior changes In staff members that might indicate fraud.
Answer: B
Explanation:
Management's Role in Fraud Monitoring:
Employees should be aware that management monitors lifestyle and behavior changes.
Transparency discourages fraudulent behavior by reinforcing accountability.
Effect of Transparency:
Awareness of monitoring helps maintain a culture of ethical behavior and reduces the likelihood of fraud.
Conclusion: The statement is false because employees should know that management is vigilant about potential fraud indicators.
NEW QUESTION # 125
Which of the following mechanisms can help alleviate the pressure on employees to commit fraud?
- A. Background check policies
- B. Employee monitoring software
- C. Discipline policies
- D. Employee support programs
Answer: D
NEW QUESTION # 126
Which of the following is one of the three general methods used to control corporate crime?
- A. Lowered regulatory enforcement by the government
- B. Loss of funding from financial institutions
- C. Demands from consumers to change
- D. Pressure from changes in the competitive environment
Answer: D
NEW QUESTION # 127
Which of the following is NOT explicitly prohibited by the ACFE Code of Professional Ethics?
- A. Participating in an activity where there is an undisclosed conflict of interest
- B. Engaging in behavior that is against the law
- C. Acting in a way that could be deemed unethical by the industry
- D. Drawing conclusions based upon evidence
Answer: D
Explanation:
ACFE Code of Professional Ethics Overview:
The Code explicitly prohibits unethical behavior, undisclosed conflicts of interest, and illegal activities. However, drawing evidence-based conclusions is encouraged as part of professional practice.
Why B is Correct:
Drawing conclusions based on evidence is central to the fraud examination process and is explicitly supported by ACFE standards.
NEW QUESTION # 128
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