This kind of polished approach is beneficial for a commendable grade in the Certified Fraud Examiner - Fraud Prevention and Deterrence Exam (CFE-Fraud-Prevention) exam. While attempting the exam, take heed of the clock ticking, so that you manage the ACFE CFE-Fraud-Prevention questions in a time-efficient way. Even if you are completely sure of the correct answer to a question, first eliminate the incorrect ones, so that you may prevent blunders due to human error.
| Section | Weight | Objectives |
|---|---|---|
| Fraud Prevention and Deterrence | 25% | - Fraud risk governance and organizational culture - Fraud prevention programs and frameworks - Internal control systems and evaluation - Monitoring, auditing, and continuous improvement - Fraud deterrence strategies and controls - Fraud risk assessment - Whistleblowing and reporting mechanisms - Anti-fraud policies and procedures - Ethics and corporate governance |
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NEW QUESTION # 280
Which of the following choices is an example of an anti-fraud control that is primarily preventive in nature?
Answer: C
Explanation:
Employee background checks are considered a preventive control because they are designed to identify potentially risky hires before employment. The manual states that "background checks are a front-line preventive measure in combating fraud by screening out individuals who pose higher risk."
NEW QUESTION # 281
Fraud risks related to regulatory and legal misconduct include all of the following EXCEPT:
Answer: A
Explanation:
Regulatory and Legal Misconduct:
This category includes practices that violate laws or regulations, such as anti-competitive behavior, insider trading, and conflicts of interest.
Why A is Correct:
Fraudulent customer payments are typically categorized under operational or financial fraud, not regulatory and legal misconduct.
NEW QUESTION # 282
According to professional auditing standards, auditors should do which of the following as part of addressing the assessed risks of material misstatement due to fraud in the financial statements?
Answer: D
NEW QUESTION # 283
As part of its anti-fraud program, Oak Company is outlining the responsibilities of different stakeholders. Who is ultimately responsible for setting the organization's ethical tone?
Answer: B
Explanation:
Management is ultimately responsible for setting the ethical tone of an organization, often referred to as the "tone at the top." This tone influences the overall ethical culture, guiding employee behavior and setting the standard for compliance and integrity. While legal, HR, and fraud professionals play supporting roles, it is leadership's responsibility to establish, model, and reinforce ethical conduct.
NEW QUESTION # 284
According to the 2020 Report to the Nations.___________schemes ate the MOST COMMON form of occupational fraud, while_________schemes are the MOST COSTLY form of occupational fraud.
Answer: A
Explanation:
Findings from the 2020 Report to the Nations:
Asset misappropriation:Most common form of occupational fraud (e.g., theft of cash or inventory).
It is frequent but less costly.
Financial statement fraud:Most costly, involving significant manipulation of financial data.
NEW QUESTION # 285
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