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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Fraud Prevention and Deterrence25%- Fraud risk assessment
- Fraud risk governance and organizational culture
- Fraud prevention programs and frameworks
- Anti-fraud policies and procedures
- Whistleblowing and reporting mechanisms
- Fraud deterrence strategies and controls
- Monitoring, auditing, and continuous improvement
- Internal control systems and evaluation
- Ethics and corporate governance

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q234-Q239):

NEW QUESTION # 234
Aqua Corp.'s board of directors is meeting to discuss fraud risk management within the organization. Which of the following activities is among the board of directors' primary responsibilities related to fraud risk management for the company?

Answer: D


NEW QUESTION # 235
Jane, a Certified Fraud Examiner (CFE), was hired lo conduct a fraud examination at XYZ Company Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring Consequently. XYZ's management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management's request.

Answer: A

Explanation:
ACFE Code of Professional Ethics:
CFEs must not make definitive statements about the absence of fraud, as such statements can mislead stakeholders and compromise professional integrity.
Why A is Correct:
Jane cannot state the company is "free of fraud" because no examination can guarantee the complete absence of fraud, only that no evidence was found based on the scope of work.


NEW QUESTION # 236
Susannah Is conducting an external audit of a company In a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking her audit procedures, she discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Susannah's BEST response to these findings?

Answer: A

Explanation:
Fraud Discovered During an Audit:
Under ISAs, auditors must communicate findings of fraud to the appropriate governance body, such as the audit committee or board of directors.
This ensures accountability and allows the organization to take appropriate remedial action.


NEW QUESTION # 237
Which of the following is the BEST reason to perform fraud risk assessments periodically?

Answer: B

Explanation:
Organizations evolve continuously through growth, restructuring, technology changes, and personnel turnover. Periodic assessments help identify new vulnerabilities and ensure controls remain effective against emerging fraud risks.


NEW QUESTION # 238
Professional auditing standards require that auditors incorporate an "element of unpredictability" in the selection of auditing procedures to be performed.

Answer: A

Explanation:
Professional Auditing Standards Requirement:
Standards such as the International Standards on Auditing (ISA) and Generally Accepted Auditing Standards (GAAS) require auditors to include elements of unpredictability in their audit procedures to reduce the risk of fraud.
Purpose of Unpredictability:
By varying the scope, timing, and extent of audits, auditors prevent potential fraudsters from anticipating audit procedures and adjusting their behavior.
Why A is Correct:
This aligns with established auditing principles to enhance fraud detection and maintain audit integrity.


NEW QUESTION # 239
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