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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Fraud Prevention and Deterrence	25%	- Fraud deterrence strategies and controls - Monitoring, auditing, and continuous improvement - Fraud prevention programs and frameworks - Internal control systems and evaluation - Ethics and corporate governance - Fraud risk assessment - Fraud risk governance and organizational culture - Anti-fraud policies and procedures - Whistleblowing and reporting mechanisms

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q179-Q184):

NEW QUESTION # 179
Helene has been working at WPX Corp. for nine years. She takes some of the company's products from the warehouse and sells them online. Helene tells herself that the company owes it to her for her "years of underpaid service." This situation BEST illustrates which component of the Fraud Triangle?

A. Perceived opportunity
B. Integrity lapse
C. Perceived non-shareable financial need
D. Rationalization

Answer: D

NEW QUESTION # 180
Which of the following Is one of the recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

A. Have adequate compensation committee resources and authority
B. Give shareholders oversight of hotline reporting programs
C. Develop a written charter for management
D. Have a mandatory independent audit committee

Answer: D

Explanation:
Treadway Commission Recommendations:
Establishing an independent audit committee is essential for oversight and reducing fraud risk in financial reporting.
Audit committees play a critical role in ensuring the integrity of financial statements.

NEW QUESTION # 181
A manager intentionally overrides purchasing controls to expedite a legitimate emergency purchase. Which statement is MOST accurate?

A. Management override can create risk even when the underlying purpose is legitimate
B. Emergency situations eliminate control concerns
C. Override automatically strengthens controls
D. Management override always constitutes fraud

Answer: A

Explanation:
Management override is not necessarily fraudulent, but bypassing controls increases risk. Even legitimate exceptions should be documented, monitored, and approved to prevent abuse and preserve control effectiveness.

NEW QUESTION # 182
Which of the following is the MOST EFFECTIVE way for management to respond to incidents of fraud within an organization?

A. Punishing frauds only if they have a significant financial impact.
B. Maintaining a policy that allows employees one warning before they are terminated for committing fraud
C. Keeping all known incidents of fraud private to protect the identities of parties involved.
D. Emphasizing to all employees that the company maintains a policy of zero tolerance for fraud.

Answer: D

NEW QUESTION # 183
Which of the following statements is MOST ACCURATE regarding best practices that organizations can take to protect and support whistleblowers?

A. Organizations should implement a clear whistleblower policy that lists every type of misconduct that has ever been reported at the company.
B. Organizations should publicize their whistleblower policies and procedures to individuals both inside and outside of the organization.
C. Organizations should emphasize that rules regarding whistleblower protections are only intended for lower-level employees who might be more vulnerable to retaliation.
D. Organizations should include in their whistleblower policies the specific penalties that people might encounter for refusing to report known misconduct.

Answer: B

Explanation:
Publicizing whistleblower policies both internally and externally demonstrates the organization's commitment to transparency and ethical conduct. Best practices include clearly communicating the reporting process, available protections, and encouraging reporting by all employees without fear of retaliation. Including a list of all past misconduct is unnecessary (eliminating A), while emphasizing protections only for lower-level staff (D) or focusing on penalties (C) undermines the policy's intent.

NEW QUESTION # 184
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