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| 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% | - Monitoring and continuous improvement - Fraud prevention strategies and programs
|
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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q189-Q194):
NEW QUESTION # 189
According to ACFE research, which of the following is TRUE?
- A. Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.
- B. Men and women commit similar amounts of occupational fraud.
- C. Most employees who commit occupational fraud are first-time offenders.
- D. Complaints about family problems is the most reported behavioral red flag displayed by fraud perpetrators.
Answer: C
Explanation:
The White-Collar Crime chapter summarizes ACFE research on occupational fraud perpetrators.
In the section addressing perpetrators' criminal backgrounds, the manual states that the vast majority of occupational fraudsters have no prior history of criminal fraud convictions and notes that only a small percentage had previously been convicted of a fraud-related offense. It concludes from these findings that most occupational fraudsters are first-time offenders. The manual also explains elsewhere that owners and executives tend to cause much larger median losses than lower-level employees, which eliminates option D. Because the question asks which statement is true according to ACFE research, the best answer is that most employees who commit occupational fraud are first- time offenders. This is a recurring finding in ACFE studies cited by the manual.
NEW QUESTION # 190
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.
- A. Asset misappropriation; corruption
- B. Financial statement fraud: corruption
- C. Asset misappropriation: financial statement fraud
- D. Corruption, asset misappropriation
Answer: C
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 # 191
According to Diane Vaughan, which of the following factors increases an organization's inherent inclination toward committing crime?
- A. Rewards are given to employees who challenge the status quo
- B. All of the above
- C. Management links employee performance goals with company performance goals
- D. Management seeks out diversity in attitudes and perspectives when hiring employees
Answer: C
Explanation:
Vaughan highlights that linking employee performance goals with company goals can create undue pressure, fostering an environment where unethical behavior becomes rationalized.
NEW QUESTION # 192
Which of the following is TRUE regarding an organization's ethics program?
- A. To be most effective, access to the organization's ethics policy should be restricted to external parties such as vendors and customers
- B. An ethics program should avoid addressing rewards for ethical behavior and sanctions for unethical behavior
- C. In designing the ethics program, management should consider how stakeholders throughout the organization define success
- D. Having a written ethics policy is sufficient to communicate management's ethical philosophy and serve as a comprehensive ethics program
Answer: C
Explanation:
For an ethics program to be effective, management must integrate the organization's ethical principles with the perceptions and expectations of stakeholders. By considering how stakeholders define success,the organization can design an ethics program that aligns with its values and operational goals. This inclusive approach promotes adherence to ethical standards and fosters a positive ethical culture within the organization. Merely having a written policy or restricting access to it does not ensure effectiveness.
NEW QUESTION # 193
According to International Organization for Standardization (ISO) 31000:2018, an effective and efficient risk management program contains all of the following principles EXCEPT:
- A. The program is integrated into only high-risk organizational activities.
- B. The program is structured and comprehensive.
- C. The program is based upon the best available information.
- D. The program is customized and proportionate to the organization's operations and objectives.
Answer: A
Explanation:
ISO 31000:2018 emphasizes that effective risk management must be integrated into all activities across the organization--not just high-risk ones.
"An effective and efficient risk management program... is integrated into all organizational activities, is structured and comprehensive, and is customized and proportionate to the organization's operations and objectives."
NEW QUESTION # 194
......
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