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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Fraud Prevention Framework	25%	- Fraud risk governance and oversight - Fraud risk assessment processes
Topic 2: Internal Controls and Fraud Prevention	25%	- Internal control design and effectiveness - Fraud detection and prevention controls
Topic 3: Corporate Governance and Ethics	25%	- Ethical culture and tone at the top - Code of conduct and compliance programs
Topic 4: Fraud Risk Management and Deterrence	25%	- Fraud prevention strategies and programs - Monitoring and continuous improvement

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q266-Q271):

NEW QUESTION # 266
In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.

A. True
B. False

Answer: A

Explanation:
Understanding Compliance Theory:
Compliance theory emphasizes preventing crime through incentives for voluntary adherence to laws and proactive administrative measures.
By addressing potential violations early, compliance theory aims to deter criminal behavior before it occurs.
Application of the Theory:
Examples include economic benefits for following regulations and monitoring mechanisms to identify early signs of noncompliance.
Conclusion: The statement accurately describes compliance theory.

NEW QUESTION # 267
Daniela, an independent Certified Fraud Examiner (CFE), was hired by Charles, executive director of a nonprofit organization, to investigate a straightforward embezzlement case.
Duringthe investigation, Daniela learns that Charles is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Daniela should:

A. Tell the nonprofit's board of trustees about Charles
B. Resign from the engagement.
C. Not disclose the information about Charles.
D. Report Charles to law enforcement

Answer: A

Explanation:
ACFE Code of Professional Ethics:
CFEs must act with integrity and report material fraud findings to the appropriate authority within the organization.
Why A is Correct:
Informing the board of trustees ensures that those responsible for governance can take appropriate action. Reporting to law enforcement (option B) may breach contractual obligations unless legally required.

NEW QUESTION # 268
Which of the following is TRUE regarding the internal audit function's reporting responsibilities pertaining to fraud?

A. The internal audit function should discuss how and when to report fraud-related issues with senior management and the board of directors before such issues arise.
B. The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.
C. The internal audit function is permitted, but not required, to periodically report about the organization's fraud risks to senior management and the board of directors.
D. The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence.

Answer: A

Explanation:
Internal Audit Reporting Responsibilities:
Internal audit must maintain open communication with senior management and the board to ensure appropriate handling of fraud-related issues.
Establishing reporting protocols in advance ensures timely and consistent responses when fraud occurs.

NEW QUESTION # 269
The internal auditor's fraud-related responsibilities include which of the following?

A. Evaluating the organization's structures and process for fraud risk governance.
B. Reporting to regulators regarding the entity's vulnerability to fraud.
C. Overseeing management's actions to manage fraud risks.
D. Issuing a report asserting that the organization's financial statements do not contain material misstatements caused by fraud.

Answer: A

NEW QUESTION # 270
In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:

A. Risks to the organization's reputation
B. All of the above
C. The organization's incentive programs
D. The possibility of management's override of controls

Answer: B

NEW QUESTION # 271
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