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

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

Section

Objectives

Topic 1: Fraud Prevention and Deterrence

- Management's Role

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

- Ethics

1. Ethical considerations in fraud examination

- Corporate Governance

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

- Auditors' Role

1. Fraud detection responsibilities

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q263-Q268):

NEW QUESTION # 263
Black, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination. He did not find fraud, but. in Black's opinion, the controls he examined were deficient. Under the ACFE Code of Professional Ethics. Black is not permitted to express his opinion on the deficient controls.

A. False
B. True

Answer: A

NEW QUESTION # 264
A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?

A. The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.
B. In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.
C. The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement
D. The objectives of the audit are likely narrower than those of a private-sector financial statement audit.

Answer: B

Explanation:
ISSAI Standards:
* The International Standards of Supreme Audit Institutions (ISSAI) require government auditors to consider fraud and abuse during financial audits. Abuse includes improper use of authority or resources, which may not always meet the legal threshold of fraud but still warrants attention.
Expanded Audit Scope:
* Unlike private-sector audits, public-sector audits often have broader objectives, requiring vigilance for misuse of public funds and resources.
Why A is Correct:
* Staying alert to abuse ensures comprehensive accountability, aligning with ISSAI's objectives.

NEW QUESTION # 265
Which of the following is NOT one of the three general approaches used to control corporate crime?

A. Media blacklisting of the organization
B. Voluntary changes in corporate attitudes and structure
C. Strong intervention of the government
D. Consumer action to force change

Answer: A

Explanation:
* Three General Approaches to Controlling Corporate Crime:
* Government Intervention: Strong regulations and enforcement to ensure accountability.
* Voluntary Corporate Changes: Encouraging ethical practices through organizational policies.
* Consumer Action: Pressure from consumers demanding corporate responsibility.
* Why D is Incorrect:
* Media blacklisting is not a formal or systematic approach to controlling corporate crime. It is a consequence rather than a preventive or corrective measure.

NEW QUESTION # 266
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. Report Green to law enforcement
B. Tell the company's board of directors about Green.
C. Not disclose the information about Green.
D. Resign from the engagement

Answer: B

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 # 267
The theory of differential association is used frequently lo explain white-collar criminality. Which of the following is NOT one of the assertions or principles of differential association?

A. Criminal behavior is learned from other people in a process of communication.
B. Criminal behavior is learned using the same mechanisms as other learning
C. Criminal behavior is explained by an individual's general needs and values.
D. Criminal behavior is acquired through participation with intimate personal groups.

Answer: C

NEW QUESTION # 268
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