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

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

Section

Objectives

Fraud Prevention and Deterrence

- Ethics

1. Ethical considerations in fraud examination

- Corporate Governance

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

- Management's Role

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

- Auditors' Role

1. Fraud detection responsibilities

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q194-Q199):

NEW QUESTION # 194
Which of the following is TRUE regarding the communication of the fraud risk assessment process?

A. The communication should actively encourage employees to participate in the assessment process
B. All of the above
C. The communication should be in the form of a personalized message from the assessment sponsor
D. The communication should be visibly disseminated throughout the business

Answer: B

NEW QUESTION # 195
Which of the following Is TRUE regarding the reporting of the fraud risk assessment results?

A. The fraud risk assessment report should be delivered in a style most suited to the language of the business
B. A fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified
C. All of the above
D. The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding

Answer: C

NEW QUESTION # 196
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines____________ as
"a process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance."

A. Corporate compliance
B. Fraud risk management
C. Risk assessment
D. Internal control

Answer: D

Explanation:
* COSO Definition of Internal Control:
* COSO defines internal control as a process executed by an entity's board, management, and personnel to provide reasonable assurance about achieving objectives in operations, reporting, and compliance.
* Analysis of Options:
* A. Corporate compliance: Corporate compliance focuses on adhering to laws and regulations, not the broader operational objectives.
* B. Fraud risk management: This is a component of internal control, not its definition.
* C. Risk assessment: This is a step within the internal control process but not the overarching process.
* D. Internal control: Matches the COSO definition accurately.
* Conclusion:Internal control is the correct answer as defined by COSO.

NEW QUESTION # 197
Which of the following Is NOT a way that an organization's fraud risk assessment should be Incorporated Into the audit process?

A. It should be used to replace the auditor's own identification and assessment of fraud risks.
B. It should be used to assess whether there is a moderate-to-high risk of management overriding controls within the moderate-to-high fraud risk areas.
C. It should be used to design audit tests to evaluate whether the controls are operating effectively.
D. it should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.

Answer: A

Explanation:
* Integration of Fraud Risk Assessment in Audits:
* The fraud risk assessment provides valuable input but does not replace the auditor's independent responsibility to identify and assess fraud risks.
* Why B is Correct:
* Professional auditing standards require auditors to perform their own risk assessments, and the fraud risk assessment is only a tool to enhance this process.
* Why Other Options are Correct:
* A, C, and D reflect appropriate uses of fraud risk assessments in the audit process, such as increasing awareness and designing effective audit tests.
References for All Questions:
* ACFE Code of Professional Ethics and Fraud Examination Guide.
* COSO frameworks for corporate governance and fraud risk management.
* Standards for incorporating fraud risk assessments into the audit process.

NEW QUESTION # 198
Which of the following is among the audit committee s primary responsibilities related to fraud risk management?

A. Understanding how internal and external audit strategies address fraud risk
B. Punishing fraud perpetrators discovered through fraud risk management activities
C. Designing the fraud risk management program
D. Implementing the fraud risk management program

Answer: C

NEW QUESTION # 199
......

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