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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Understanding Criminal Behavior	5–10%	- Behavior modification principles - Theories of crime causation 1. Rational choice and routine activities theory 2. Social control and social learning theory 3. Differential association theory
Topic 2: Management's Fraud-Related Responsibilities	5–10%	- Establishing anti-fraud policies - Reporting mechanisms - Oversight and accountability
Topic 3: White-Collar Crime	15–20%	- Impact on organizations and society - Organizational vs occupational crime - Causal factors and opportunity structures - Definition and characteristics - Legal prosecution and sanctions
Topic 4: Fraud Risk Assessment	15–20%	- Risk analysis and prioritization - Assessment implementation and documentation - Risk identification methodologies
Topic 5: Fraud Prevention Programs	15–20%	- Designing prevention strategies - Communication and training - Monitoring and continuous improvement
Topic 6: Professional Ethics	5–10%	- ACFE Code of Professional Ethics - Ethical decision-making - Conflicts of interest and integrity
Topic 7: Corporate Governance	20–25%	- Roles of board, management, auditors - Governance frameworks and principles 1. Treadway Commission (COSO) 2. OECD guidelines - Internal control systems 1. COSO five components

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q170-Q175):

NEW QUESTION # 170
Terrel, a Certified Fraud Examiner (CFE), unknowingly violates the law one night. Which of the following statements about the ACFE Code of Professional Ethics is TRUE?

A. This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel is arrested.
B. This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel knew the conduct was illegal.
C. This conduct would be a violation of the ACFE Code of Professional Ethics.
D. This conduct would not be a violation of the ACFE Code of Professional Ethics under any circumstances.

Answer: C

NEW QUESTION # 171
In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.

A. True
B. False

Answer: A

Explanation:
Understanding Compliance Theory:
Compliance theory emphasizes preventing crime through incentives for voluntary adherence to laws and proactive administrative measures.
By addressing potential violations early, compliance theory aims to deter criminal behavior before it occurs.
Application of the Theory:
Examples include economic benefits for following regulations and monitoring mechanisms to identify early signs of noncompliance.
Conclusion: The statement accurately describes compliance theory.

NEW QUESTION # 172
Gregory, an internal auditor, and Brandon, the company's purchasing manager, have had several heated disagreements over purchasing procedures and policies. Gregory has just been told that he will be the lead on the company's fraud risk assessment. During the fraud risk assessment.
Gregory should:

A. Confront Brandon about the disagreements and discuss how they increase the organization's risk of fraud-
B. Automatically designate the purchasing function as a high-risk area.
C. Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.
D. Have someone else perform the fraud risk assessment work related to the purchasing function

Answer: C

Explanation:
Fraud Risk Assessment Objectivity:
The assessment must remain unbiased, but any prior disagreements or conflicts may highlight areas where policies or procedures are unclear, increasing fraud risks.
Why C is Correct:
Incorporating disagreements provides context to evaluate risks objectively, ensuring that all relevant factors are considered without bias.

NEW QUESTION # 173
Aaron, a government auditor, is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions. Which of the following is TRUE regarding Aaron's consideration of fraud during this engagement?

A. Aaron should remain alert for fraud but does not need to consider the potential for abuse or other misconduct during the audit engagement.
B. Aaron does not need to comply with the requirements found in International Standard on Auditing
240 as they do not apply to the engagement.
C. Aaron's audit objectives are likely narrower than those of a private-sector financial statement audit.
D. Aaron likely does not have the ability to withdraw from the engagement even if fraud is identified during the audit.

Answer: D

Explanation:
Government auditors typically cannot unilaterally withdraw from an audit engagement, even in cases where fraud is identified. Public-sector audits often follow mandates from higher authorities or statutes that require the auditor to continue and report findings to oversight bodies.
Additionally, fraud and abuse (including misconduct and misuse of assets) are relevant to government audits under ISSAIs, contrary to A and B. Option D is incorrect because public-sector audit objectives are often broader, encompassing compliance, performance, and integrity aspects.

NEW QUESTION # 174
ABC. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that ABC is subject to?

A. ABC is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.
B. ABC is required to comply with G20/OECD Principles of Corporate Governance
C. ABC must comply with specific listing standards for the stock exchange(s) on which it is listed
D. ABC is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions

Answer: C

Explanation:
Publicly traded companies must adhere to the listing standards of the stock exchanges where their shares are traded (e.g., NYSE or NASDAQ).

NEW QUESTION # 175
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