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

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q329-Q334):

NEW QUESTION # 329
According to ACFE research, the most common method for detecting occupational fraud is:

Answer: B

Explanation:
ACFE research consistently shows that tips are the most common method for detecting occupational fraud.
Organizations often rely on whistleblowing mechanisms such as hotlines to encourage employees and other stakeholders to report suspected fraud, which makes tips the most effective fraud detection tool.


NEW QUESTION # 330
For Its compliance program to be effective, an organization must perform procedures to ensure management hires only ethical Individuals who exercise a substantial measure of discretion In acting on the organization's behalf

Answer: A


NEW QUESTION # 331
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines internal control as:

Answer: B

Explanation:
COSO defines internal control as a process effected by the board of directors, management, and other personnel, designed to provide reasonable assurance regarding achievement of objectives relating to operations, reporting, and compliance. Option B matches that definition. Option A more closely describes a risk management review concept, not the definition of internal control. Option C is incorrect because internal control provides reasonable assurance; it does not eliminate all uncertainty and risk. Option D describes a fraud risk assessment, not internal control. In corporate governance and fraud prevention, internal control is central because it supports reliable reporting, efficient operations, compliance, accountability, and fraud risk reduction. However, even strong internal control has limitations, so it provides reasonable rather than absolute assurance.


NEW QUESTION # 332
In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.

Answer: A


NEW QUESTION # 333
Devon, an employee at Tilly Corp., repeatedly demonstrates a negative attitude when working with other departments. To address this behavior, Devon's manager tells him that he is no longer allowed to lead cross-departmental projects. This is an example of what type of behavioral response?

Answer: C

Explanation:
This scenario is an example of punishment. Punishment involves introducing a consequence (in this case, the loss of responsibility for cross-departmental projects) to discourage undesirable behavior. The manager uses this approach to address Devon's negative attitude and to promote better cooperation with other departments in the future.


NEW QUESTION # 334
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