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ACFE CFE-Fraud-Prevention-and-Deterrence Exam Syllabus Topics:

SectionObjectives
Fraud Prevention and Deterrence- Management's Role
  • 1. Fraud risk assessment
  • 2. Building anti-fraud programs
- Ethics
  • 1. Ethical considerations in fraud examination
- Auditors' Role
  • 1. Fraud detection responsibilities
- Corporate Governance
  • 1. Internal controls
  • 2. Board oversight
  • 3. Roles and responsibilities

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q250-Q255):

NEW QUESTION # 250
Po, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination. She did not find fraud, but in Po's opinion, there were several internal control deficiencies that, if not corrected, could facilitate the occurrence of fraud. Under the ACFE Code of Professional Ethics, which of the following is TRUE?

Answer: C


NEW QUESTION # 251
Which of the following is NOT a factor that directors and management should consider when developing a corporate governance framework for an organization?

Answer: C

Explanation:
Corporate Governance Framework Requirements:
* A corporate governance framework must be dynamic, adapting to changes in regulations, markets, and corporate landscapes.
* It must consider legal, ethical, cultural, and operational environments.
Why B is Incorrect:
* A static framework cannot accommodate evolving business risks, regulatory changes, and cultural shifts, leading to governance failures. Flexibility is critical for sustainability and resilience.
References:
* ACFE governance best practices and COSO framework guidance highlight the importance of adaptability in governance frameworks.


NEW QUESTION # 252
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."

Answer: D

Explanation:
* COSO Definition of Internal Control:
* 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.
* Analysis of Options:
* A. Operational risk assessment: A component of internal control, not the overall process.
* C. Fraud risk management: Focuses specifically on fraud risks, a subset of internal control.
* D. Financial reporting: A specific objective addressed by internal control.
* Conclusion:The correct answer is internal control, as defined by COSO.
References:COSO Internal Control-Integrated Framework.


NEW QUESTION # 253
(Cedric is an internal auditor with XYZ Company. Cedric's supervisor, James, is the chief audit executive (CAE) and the fraud risk assessment sponsor. James has tasked Cedric with drafting an email communication regarding XYZ's upcoming fraud risk assessment process. Which of the following is a best practice that Cedric should implement?)

Answer: A

Explanation:
The Fraud Risk Assessment chapter emphasizes the importance of educating employees and openly promoting the fraud risk assessment process. It also explains that the right sponsor is critical and that an influential leader should formally support and communicate the process. Because James is the chief audit executive and the sponsor, communications about the upcoming assessment should come from him or clearly carry his authority. Sending the message from the sponsor's email address reinforces legitimacy, organizational support, and employee attention. By contrast, keeping the communication limited to the board, making it overly generic, or intentionally vague would undermine the manual's guidance to openly promote the process and prepare the organization effectively. Thus, the best practice is for the communication to be sent from James's email address.


NEW QUESTION # 254
Jane, a Certified Fraud Examiner (CFE), was hired lo conduct a fraud examination at XYZ Company Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring Consequently. XYZ's management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management's request.

Answer: B


NEW QUESTION # 255
......

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