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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Management's Fraud-Related Responsibilities	5–10%	- Establishing anti-fraud policies - Reporting mechanisms - Oversight and accountability
Corporate Governance	20–25%	- Governance frameworks and principles 1. OECD guidelines 2. Treadway Commission (COSO) - Roles of board, management, auditors - Internal control systems 1. COSO five components
Understanding Criminal Behavior	5–10%	- Theories of crime causation 1. Social control and social learning theory 2. Rational choice and routine activities theory 3. Differential association theory - Behavior modification principles
White-Collar Crime	15–20%	- Legal prosecution and sanctions - Causal factors and opportunity structures - Definition and characteristics - Impact on organizations and society - Organizational vs occupational crime
Professional Ethics	5–10%	- Ethical decision-making - ACFE Code of Professional Ethics - Conflicts of interest and integrity
Fraud Prevention Programs	15–20%	- Designing prevention strategies - Communication and training - Monitoring and continuous improvement
Fraud Risk Assessment	15–20%	- Risk analysis and prioritization - Assessment implementation and documentation - Risk identification methodologies

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CFE-Fraud-Prevention Certification Sample Questions | CFE-Fraud-Prevention Hot Spot Questions

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q65-Q70):

NEW QUESTION # 65
"Crimes of the Middle Classes" finds that all the following factors have contributed to the rising problem of economic crime EXCEPT:

A. The economy's decreased reliance on credit and a decline in personal debt.
B. Advancement of information technologies increasing the opportunity for misconduct.
C. Media sources sending the message that no one has to settle for second best.
D. The increase in funds available from government assistance programs.

Answer: A

NEW QUESTION # 66
Which of the following is TRUE regarding corporate governance?

A. An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization
B. Corporate governance's primary purpose is to ensure the accuracy of the organization's financial reports
C. Fraud risk management is considered to be the foundation of effective corporate governance
D. Effective corporate governance practices are most necessary in an organization in which the owners are also the individuals responsible for setting the corporate strategy.

Answer: A

Explanation:
Definition of Corporate Governance:
Corporate governance establishes the framework for decision-making and accountability within an organization. It includes roles, rights, and responsibilities of stakeholders such as the board, management, and shareholders.
Why D is Correct:
The governance structure formalizes the distribution of roles and ensures clarity in accountability and oversight.

NEW QUESTION # 67
Professional auditing standards require that auditors incorporate an "element of unpredictability" in the selection of auditing procedures to be performed.

A. False
B. True

Answer: B

Explanation:
Professional Auditing Standards Requirement:
Standards such as the International Standards on Auditing (ISA) and Generally Accepted Auditing Standards (GAAS) require auditors to include elements of unpredictability in their audit procedures to reduce the risk of fraud.
Purpose of Unpredictability:
By varying the scope, timing, and extent of audits, auditors prevent potential fraudsters from anticipating audit procedures and adjusting their behavior.
Why A is Correct:
This aligns with established auditing principles to enhance fraud detection and maintain audit integrity.

NEW QUESTION # 68
Which of the following factors increases an organization's inherent inclination toward committing crime according to Diane Vaughan's research?

A. Management rewards employees who challenge how the company functions.
B. Management separates employee performance goals from company performance goals.
C. Management encourages employee loyalty through social functions.
D. Management seeks diversity in attitudes and perspectives when hiring employees.

Answer: B

NEW QUESTION # 69
Eliece, a Certified Fraud Examiner (CFE), and Jewel are employees at Silver Inc. Jewel informs Eliece that she has knowledge of a potential financial statement fraud but does not feel comfortable sharing this information unless Eliece can promise that she will keep it confidential.
How should Eliece respond?

A. Eliece should encourage Jewel to report the information to law enforcement because she cannot agree to Jewel's request.
B. Eliece should promise Jewel that she will keep the information confidential even though she knows that she will likely be unable to keep that promise.
C. Eliece should tell Jewel that she will try to keep the information as confidential as possible but she might have an ethical obligation to inform their employer.
D. Eliece should immediately contact management at Silver Inc. to provide information about her conversation with Jewel and her request for confidentiality.

Answer: C

Explanation:
CFEs must act ethically and responsibly when handling sensitive information. Eliece should inform Jewel that she will try to maintain confidentiality but must adhere to professional and ethical obligations, which may require disclosing the information to appropriate parties such as her employer or relevant authorities. This balanced response encourages transparency while maintaining ethical standards.

NEW QUESTION # 70
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