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

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

Section

Objectives

Fraud Prevention and Deterrence

- Auditors' Role

1. Fraud detection responsibilities

- Corporate Governance

1. Board oversight
2. Internal controls
3. Roles and responsibilities

- Management's Role

1. Fraud risk assessment
2. Building anti-fraud programs

- Ethics

1. Ethical considerations in fraud examination

>> CFE-Fraud-Prevention-and-Deterrence Relevant Answers <<

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q129-Q134):

NEW QUESTION # 129
Gray, an independent Certified Fraud Examiner (CFE), was hired by Green, president of the ABC Corporation, to investigate allegations that one of ABC's employees is taking kickbacks. During the investigation. Gray teams that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:

A. Tell the company's board of directors about Green.
B. Report Green to law enforcement
C. Not disclose the information about Green.
D. Resign from the engagement

Answer: A

Explanation:
Professional Responsibility Under ACFE Code of Ethics:
The ACFE Code of Professional Ethics requires Certified Fraud Examiners (CFEs) to disclose material information to the proper authorities. When fraud is discovered, the CFE must act in the best interest of the organization while adhering to ethical standards.
In this scenario, Gray must report Green's involvement in unrelated fraud to ABC Corporation's board of directors. This ensures transparency and accountability without breaching client confidentiality unnecessarily.
Relevant Principles from ACFE Code of Ethics:
Integrity:CFEs must act honestly and report findings to the appropriate parties.
Objectivity:The CFE must avoid conflicts of interest and ensure impartiality in all findings and disclosures.
Board Reporting Responsibility:
Reporting to the board is appropriate because they are responsible for corporate governance and oversight.
Law enforcement involvement should follow organizational protocols unless laws explicitly mandate direct reporting.

NEW QUESTION # 130
Charles, the chief executive officer (CEO) of the Baking & Things Corporation, hired Daniela, a Certified Fraud Examiner (CFE), to investigate an embezzlement case. During the investigation, Daniela learns that Charles is involved in an unrelated fraud. What action should Daniela take based on the ACFE Code of Professional Ethics?

A. Daniela should tell the company's board of directors about Charles.
B. Daniela should report Charles to law enforcement.
C. Daniela should immediately resign from the engagement.
D. Daniela should contact the media to report what she found.

Answer: A

NEW QUESTION # 131
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 # 132
Alicia, a government auditor, is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions. Which of the following is TRUE regarding Alicia's consideration of fraud during this engagement?

A. In conducting the audit, Alicia's objectives are likely narrower than those of a private-sector financial statement audit.
B. Alicia should focus on potential fraud and does not need to consider the possibility of abuse or other misconduct during the audit engagement.
C. If Alicia identifies fraud during the audit engagement, she must immediately withdraw from the engagement.
D. Alicia must comply with the requirements found in International Standard on Auditing 240 as they apply to both private- and public-sector audits.

Answer: D

Explanation:
Government auditors, like their private-sector counterparts, must adhere to International Standard on Auditing (ISA) 240, which provides guidance on the auditor's responsibilities related to fraud. This standard applies to both private- and public-sector audits, emphasizing the importance of addressing risks of material misstatement due to fraud. Alicia must carefully evaluate fraud risks and incorporate relevant procedures, as mandated by ISA 240, ensuring a comprehensive audit approach.
====

NEW QUESTION # 133
Jody has been working at ABC Corp. for ten years. He steals funds from the company and tells himself that the company owes it to him for his "unrewarded hard work and loyalty" This situation BEST illustrates which leg of the Fraud Triangle?

A. Rationalization
B. Lack of personal Integrity
C. Perceived opportunity
D. Perceived non-shareable financial need

Answer: A

NEW QUESTION # 134
......

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