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ACFE CFE-Fraud-Prevention-and-Deterrence (Certified Fraud Examiner - Fraud Prevention and Deterrence) Exam is a certification offered by the Association of Certified Fraud Examiners (ACFE) to professionals who specialize in the prevention, detection, and deterrence of fraud. CFE-Fraud-Prevention-and-Deterrence Exam is designed to test the knowledge and skills of individuals who are responsible for developing and implementing fraud prevention programs in their organizations.

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The Certified Fraud Examiner (CFE) - Fraud Prevention and Deterrence is an exam offered by the Association of Certified Fraud Examiners (ACFE). CFE-Fraud-Prevention-and-Deterrence Exam is designed to test the knowledge and skills of professionals who are involved in the prevention and detection of fraud. The CFE-Fraud Prevention and Deterrence exam covers a wide range of topics related to fraud, including fraud prevention, detection, investigation, and deterrence.

ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q229-Q234):

NEW QUESTION # 229
During an external audit of an organization's financial statements, Saskia, the external auditor, uncovers significant internal control deficiencies at the organization. She believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Saskia do regarding these findings?

A. Saskia should suspend the current audit engagement and begin a new audit focused on the internal control deficiencies.
B. Saskia should withdraw from the audit engagement immediately and issue a disclaimer on any prior work performed.
C. Saskia should provide a written communication about her findings to the relevant regulatory agencies.
D. Saskia should communicate the deficiencies in writing to those charged with governance.

Answer: D

Explanation:
Comprehensive and Detailed in Depth Explanation:
ISA 265 requires that significant deficiencies in internal control identified during an audit be communicated in writing to those charged with governance. The auditor is not obligated to inform regulatory agencies unless required by law (eliminating A). Internal control audits are not separate engagements under standard financial statement audits (eliminating B). Withdrawal from the engagement is a last resort and only appropriate under severe circumstances beyond internal control issues (eliminating D).

NEW QUESTION # 230
(Andrea is leading the fraud risk assessment process for her organization. Which of the following considerations about the fraud risk assessment process is MOST ACCURATE and should be incorporated into Andrea's plans?)

A. The fraud risk assessment is most effective when management's influence on the process is limited.
B. To ensure the independence of the team members, a consultant or another external party must conduct the fraud risk assessment.
C. Conducting an effective fraud risk assessment requires thinking like a fraudster.
D. If the individuals conducting the fraud risk assessment believe that fraud could not happen at the organization, then the assessment process should reflect that belief.

Answer: C

Explanation:
The Fraud Risk Assessment chapter explains that one of the most important concepts in conducting an effective fraud risk assessment is learning to think like a fraudster. The manual states that team members should set aside assumptions that fraud could not occur and instead consider how misconduct might actually be committed and concealed within the organization. This perspective helps identify realistic fraud schemes, opportunities, methods of concealment, and potential override risks. The manual does not say that management's influence should be minimized in all respects, nor does it require that an outside consultant must always conduct the assessment. Rather, it stresses objectivity, proper team selection, and a willingness to consider fraud risks honestly. Therefore, the most accurate choice is that conducting an effective fraud risk assessment requires thinking like a fraudster.

NEW QUESTION # 231
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 should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence.
D. 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.

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.
* Analysis of Other Options:
* B. Periodic reporting is optional: Reporting fraud risks is a required responsibility.
* C. Non-disclosure: Fails to fulfill the role of internal audit in governance and accountability.
* D. No communication with the board: Misrepresents the internal audit's role in fraud oversight.
* Conclusion:Discussing reporting protocols proactively with senior management and the board is the correct approach.

NEW QUESTION # 232
Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

A. A request that governments have in place an appropriate framework to support good corporate governance practices
B. Guidance regarding appropriate board structures, responsibilities, and procedures
C. Support for establishing stronger protection for foreign shareholders than for domestic shareholders
D. Recognition of the importance of the role of stakeholders in corporate governance

Answer: C

NEW QUESTION # 233
According to the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control- Integrated Framework (the Framework), there are five interrelated components of a company's internal control. Which of the following is NOT among these five components?

A. Ethical culture
B. Monitoring
C. Control activities
D. Risk assessment

Answer: A

Explanation:
* Five Components of COSO's Internal Control Framework:
* A. Control activities: Policies and procedures to ensure objectives are met.
* C. Risk assessment: Identifying and analyzing risks.
* D. Monitoring: Ongoing evaluation of control effectiveness.
* Control environment: Includes the tone at the top and organizational ethics.
* Information and communication: Facilitates the flow of relevant information.
* Explanation of Ethical Culture:
* While ethical culture is critical to the control environment, it is not one of the five standalone components of the framework.
* Conclusion:Ethical culture is not a separate component but a part of the control environment.

NEW QUESTION # 234
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