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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Fraud Prevention Framework	25%	- Fraud risk governance and oversight - Fraud risk assessment processes
Fraud Risk Management and Deterrence	25%	- Monitoring and continuous improvement - Fraud prevention strategies and programs
Internal Controls and Fraud Prevention	25%	- Internal control design and effectiveness - Fraud detection and prevention controls
Corporate Governance and Ethics	25%	- Ethical culture and tone at the top - Code of conduct and compliance programs

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q283-Q288):

NEW QUESTION # 283
Which of the following is TRUE regarding G20/OECD Principles of Corporate Governance (the Principles)?

A. The Principles state that an entity's corporate governance framework should ensure the equitable treatment of all shareholders.
B. The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them
C. The Principles state that an entity's corporate governance framework should discourage active cooperation between corporations and stakeholders in creating wealth.
D. The Principles are intended to be applicable in developed economies but not in emerging markets.

Answer: A

Explanation:
G20/OECD Principles Overview:
The G20/OECD Principles of Corporate Governance are international guidelines aimed at enhancing economic efficiency and promoting stable financial systems.
Equitable Treatment of Shareholders:
The principles stress fairness and the protection of all shareholders' rights, particularly minority shareholders, ensuring they are treated equally.
Why D is Correct:
Equitable treatment is a fundamental tenet of the Principles, which strive to maintain trust and integrity in governance practices across jurisdictions.

NEW QUESTION # 284
A fraud examiner is preparing a report. Which action would violate professional standards?

A. Recommending control improvements
B. Expressing an opinion that a suspect is guilty of fraud
C. Reporting conclusions supported by evidence
D. Identifying control weaknesses observed during the examination

Answer: B

Explanation:
Under ACFE standards, a fraud examiner may present facts, evidence, and professional conclusions regarding technical matters. However, determining guilt or innocence is the responsibility of courts and legal authorities, not fraud examiners.

NEW QUESTION # 285
The internal auditor's fraud-related responsibilities include which of the following?

A. Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program
B. Reporting to regulators regarding the entity's vulnerability to fraud
C. Overseeing management's actions to manage fraud risks
D. Attesting that the organization's financial statements are free of material misstatements caused by fraud

Answer: A

Explanation:
Internal Auditors' Role in Fraud Risk Management:
Internal auditors evaluate management's commitment to overseeing and addressing fraud risks as part of their assurance role.
Why A is Correct:
Oversight of fraud risk management is a management responsibility, and internal auditors assess whether this responsibility is effectively retained and executed.

NEW QUESTION # 286
The objective of anti-fraud controls is to:

A. Completely eliminate inherent fraud risk.
B. Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk
C. Completely eliminate residual fraud risk
D. Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.

Answer: B

Explanation:
Fraud Risk Reduction Objectives:
Inherent fraud risk:The risk present before any controls are applied.
Residual fraud risk:The remaining risk after controls have been implemented.
Why D is Correct:
The goal of anti-fraud controls is to minimize residual risk to acceptable levels, recognizing that complete elimination of risk is unattainable.

NEW QUESTION # 287
Fraud risks related to regulatory and legal misconduct include all of the following EXCEPT:

A. Fraudulent customer payments
B. Anti-competitive practices
C. Insider trading
D. Conflicts of interest

Answer: A

Explanation:
Regulatory and Legal Misconduct:
This category includes practices that violate laws or regulations, such as anti-competitive behavior, insider trading, and conflicts of interest.
Why A is Correct:
Fraudulent customer payments are typically categorized under operational or financial fraud, not regulatory and legal misconduct.

NEW QUESTION # 288
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