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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Corporate Governance | 20–25% | - Roles of board, management, auditors - Internal control systems
|
| Topic 2: Professional Ethics | 5–10% | - Conflicts of interest and integrity - ACFE Code of Professional Ethics - Ethical decision-making |
| Topic 3: Management's Fraud-Related Responsibilities | 5–10% | - Establishing anti-fraud policies - Oversight and accountability - Reporting mechanisms |
| Topic 4: Understanding Criminal Behavior | 5–10% | - Behavior modification principles - Theories of crime causation
|
| Topic 5: White-Collar Crime | 15–20% | - Legal prosecution and sanctions - Impact on organizations and society - Organizational vs occupational crime - Causal factors and opportunity structures - Definition and characteristics |
| Topic 6: Fraud Prevention Programs | 15–20% | - Monitoring and continuous improvement - Communication and training - Designing prevention strategies |
| Topic 7: Fraud Risk Assessment | 15–20% | - Risk analysis and prioritization - Risk identification methodologies - Assessment implementation and documentation |
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NEW QUESTION # 81
Andrew, an internal auditor, is formalizing a process to identify and evaluate threats to his company's ability to achieve its objectives. Andrew's initiative BEST pertains to whichcomponent of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control-- Integrated Framework?
Answer: B
Explanation:
Risk assessment is a core component of the COSO Framework and focuses on identifying, analyzing, and evaluating risks that could affect the organization's objectives. Andrew's initiative to evaluate threats aligns with this component, as it involves understanding the potential risks and their impact on achieving the organization's goals.
NEW QUESTION # 82
Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but It allows exceptions for unknowing violations of the law.
Answer: B
Explanation:
ACFE Code of Professional Ethics:
Article II prohibits all illegal and unethical conduct, with no exceptions for unknowing violations of the law. CFEs are expected to maintain a high standard of professional integrity and responsibility.
Why B is Correct:
Ignorance of the law is not an acceptable defense under the ACFE Code of Ethics. Professionals must ensure they understand and comply with applicable laws.
NEW QUESTION # 83
XYZ. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that XYZ is subject to?
Answer: B
Explanation:
Corporate Governance in Multinational Corporations:
Multinational corporations must adhere to the legal, regulatory, and governance frameworks of each jurisdiction in which they operate. These frameworks may vary significantly across countries.
Why A is Correct:
It reflects the reality of multinational operations, where governance compliance must align with local laws and regulations.
NEW QUESTION # 84
Julia, an internal auditor, is formalizing a process to evaluate the effectiveness of the company's control system over time, including both ongoing evaluations and periodic, separate evaluations.
Julia's initiative BEST pertains to the component of the Committee of Sponsoring Organizations of the Treadway Commission's COSO Internal Control--Integrated Framework the Framework:
Answer: D
Explanation:
The Management's Fraud-Related Responsibilities chapter defines monitoring as the process that assesses the effectiveness of a control system over time. The manual states that this component should include both ongoing evaluations and periodic separate evaluations, and that the findings should be measured against predefined criteria. This wording matches the question almost exactly. Monitoring also includes timely evaluation and communication of internal control deficiencies to the appropriate parties for corrective action. Because Julia is establishing a process for continuous and separate reviews of control effectiveness over time, her initiative falls squarely within the monitoring component of COSO's Internal Control--Integrated Framework.
None of the other components focus on the continuing evaluation of whether controls remain present and functioning over time in this way.
NEW QUESTION # 85
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: B
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 # 86
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