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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q34-Q39):

NEW QUESTION # 34
A company implements a fraud hotline but does not allow anonymous reporting. What is the MOST likely consequence?

A. Reduced employee concerns about retaliation
B. Fewer tips and reduced reporting effectiveness
C. Increased reporting rates
D. Elimination of false allegations

Answer: B

Explanation:
Employees may hesitate to report suspected misconduct if anonymity is unavailable. Fear of retaliation, damaged relationships, or career consequences can discourage reporting and reduce the effectiveness of the hotline program.

NEW QUESTION # 35
According to International Organization for Standardization (ISO) 31000:2018, an effective and efficient risk management program contains all of the following principles EXCEPT:

A. The program takes human and cultural factors into account.
B. The program facilitates continuous improvement.
C. The program is customized and proportionate to the organization's operations and objectives.
D. The program is static and consistent, even during times of organizational change.

Answer: D

NEW QUESTION # 36
ArtisanWare, Inc. is a retailer of high-end kitchen supplies. The company receives a very large order from EFG Company, a new customer in a different country that wants to pay on credit.
Which of the following is MOST ACCURATE regarding the due diligence procedures that ArtisanWare should perform on EFG before proceeding with this transaction?

A. ArtisanWare should examine EFG's net worth as part of deciding whether to allow the purchase on credit.
B. ArtisanWare only needs to undertake due diligence procedures if EFG conducts business in countries with known corruption risks.
C. ArtisanWare should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination.
D. ArtisanWare does not need to take any specific procedures to verify EFG's identity before accepting the transaction.

Answer: A

NEW QUESTION # 37
Maria, a Certified Fraud Examiner (CFE), is conducting a fraud risk assessment for a company where her brother serves as the Chief Financial Officer. Maria believes she can remain impartial.
What should she do?

A. Continue the assessment if the board verbally approves
B. Continue the assessment but avoid reviewing financial controls
C. Disclose the relationship and remove herself from the engagement if independence could reasonably be questioned
D. Continue the assessment because no actual fraud has been identified

Answer: C

Explanation:
The ACFE emphasizes both actual objectivity and the appearance of objectivity. Even if Maria believes she can remain unbiased, a reasonable third party could question her independence due to the close family relationship. Proper disclosure and reassignment help preserve confidence in the integrity of the engagement.

NEW QUESTION # 38
According to the differential reinforcement theory, behavior is weakened when positive rewards are gained or punishment is avoided.

A. True
B. False

Answer: B

Explanation:
Differential Reinforcement Theory:
This theory suggests behavior is strengthened when positive rewards are gained or punishment is avoided, not weakened.
The premise is the opposite of what the statement claims.
Conclusion: The statement is incorrect because differential reinforcement strengthens, not weakens, behavior.

NEW QUESTION # 39
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