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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Internal Controls and Fraud Prevention	25%	- Fraud detection and prevention controls - Internal control design and effectiveness
Corporate Governance and Ethics	25%	- Ethical culture and tone at the top - Code of conduct and compliance programs
Fraud Prevention Framework	25%	- Fraud risk governance and oversight - Fraud risk assessment processes
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 (Q39-Q44):

NEW QUESTION # 39
Which of the following statements is FALSE regarding an organization's fraud risk management program?

A. There should be measures in place to address failures in the design or operation of anti-fraud controls, as well as fraud occurrences
B. The responsibility of handling suspected incidents of noncompliance should be delegated to someone outside of the company.
C. The program must include mechanisms to monitor and identify breaches in compliance.
D. Formal sanctions for intentional noncompliance should be well-publicized throughout the company

Answer: B

Explanation:
Fraud Risk Management Program Requirements:
A fraud risk management program includes mechanisms to detect and respond to noncompliance, sanctions for violations, and measures to address control failures.
Why B is Incorrect:
Responsibility for handling suspected incidents should remain within the organization, typically assigned to compliance officers or internal audit teams. Delegating it to external parties undermines internal governance.

NEW QUESTION # 40
During a fraud risk assessment, a manager argues that fraud risks should only be evaluated based on historical fraud incidents. What is the BEST response?

A. Evaluate both existing and potential fraud risks, including risks not previously observed
B. Focus exclusively on areas with prior losses
C. Agree because past fraud is the strongest predictor of future fraud
D. Exclude hypothetical fraud scenarios

Answer: A

Explanation:
Fraud risk assessments should consider both known and emerging risks. The absence of prior incidents does not indicate the absence of vulnerability. Organizations must evaluate potential schemes, changing business processes, and new threats that may not yet have occurred.

NEW QUESTION # 41
Which of the following is included in the G20/OECD Principles of Corporate Governance?

A. An emphasis on the importance of timely, accurate, and transparent disclosure mechanisms.
B. Support for the equal treatment of all members of an organization's governing body.
C. A request that governments implement effective internal controls to support good corporate governance practices.
D. A requirement for a corporate governance framework that protects the exercise of management's rights.

Answer: C

NEW QUESTION # 42
Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?

A. Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented tnem.
B. Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program's effectiveness.
C. Management must balance the investment in anti-fraud controls with the benefit of those controls and the amount of risk it is willing to accept.
D. Management should tailor the detailed objectives of the fraud risk management program to the organization's specific needs and goals.

Answer: B

Explanation:
Management should focus on tailoring objectives to the organization's needs, examining past fraud incidents, and balancing costs with benefits. Assigning a quantitative measure to risk appetite, while potentially useful, is not a requirement for effective fraud risk management.

NEW QUESTION # 43
Which of the following is a detective anti-fraud control?

A. Independent reconciliations
B. Separation of duties
C. Fraud awareness training
D. Hiring policies and procedures

Answer: A

Explanation:
Detective Anti-Fraud Controls:
These controls aim to identify fraud after it has occurred. Independent reconciliations are an example of such controls because they verify transactions and accounts to detect discrepancies.
Why B is Correct:
Independent reconciliations are specifically designed to identify errors or fraud in financial records.

NEW QUESTION # 44
......

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