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| Section | Objectives |
|---|
| Topic 1: Fraud Prevention and Deterrence | - Management's Role
- 1. Building anti-fraud programs
- 2. Fraud risk assessment
- Corporate Governance
- 1. Board oversight
- 2. Internal controls
- 3. Roles and responsibilities
- Auditors' Role
- 1. Fraud detection responsibilities
- Ethics
- 1. Ethical considerations in fraud examination
|
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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q319-Q324):
NEW QUESTION # 319
Which of the following statements is FALSE regarding an organization's fraud risk management program?
- A. The responsibility of handling suspected incidents of noncompliance should be delegated to someone outside of the company.
- B. There should be measures in place to address failures in the design or operation of anti-fraud controls, as well as fraud occurrences
- C. The program must include mechanisms to monitor and identify breaches in compliance.
- D. Formal sanctions for intentional noncompliance should be well-publicized throughout the company
Answer: A
NEW QUESTION # 320
Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?
- A. Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file. Susan complied with the court order, even though she did not have the client's authorization to do so.
- B. All of the above are violations
- C. Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.
- D. Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.
Answer: B
Explanation:
* Analysis of Each Option:
* A. Green's conduct: Including unrelated deficiencies violates the principle of relevance and focus in reporting. It may lead to confusion or breach professional diligence.
* B. Stephanie's conduct: Delegating tasks without oversight or review violates the ACFE Code's requirement for due diligence.
* C. Susan's conduct: Failing to seek client authorization before disclosing records (even under a court order) breaches confidentiality provisions unless explicitly required by law.
* Key Ethical Considerations:
* CFEs must adhere to principles of confidentiality, diligence, and focus in their work.
* Failing to follow these standards compromises the integrity and credibility of their practice.
* Conclusion:All the described scenarios involve violations of the ACFE Code of Professional Ethics.
References:ACFE Code of Professional Ethics-rules related to diligence, confidentiality, and professional behavior.
NEW QUESTION # 321
Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the most effective way for Smith to encourage his team members to keep their cash drawers in balance?
- A. Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.
- B. Take away an hour of paid time off for each time the drawer is over or short.
- C. Publicly call out and criticize employees whose cash drawers are over or short
- D. Demote employees who continue to have reconciliation discrepancies
Answer: A
NEW QUESTION # 322
The Public Interest Oversight Board (PIOB) is the global body responsible for establishing international corporate governance standards.
Answer: A
NEW QUESTION # 323
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: B
NEW QUESTION # 324
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