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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Corporate Governance and Ethics	25%	- Code of conduct and compliance programs - Ethical culture and tone at the top
Fraud Prevention Framework	25%	- Fraud risk assessment processes - Fraud risk governance and oversight
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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q282-Q287):

NEW QUESTION # 282
Employee support programs are a fraud prevention mechanism that addresses which leg of the Fraud Triangle

A. Pressure
B. Rationalization
C. Opportunity
D. Lack of integrity

Answer: A

Explanation:
Fraud Triangle and Employee Support Programs:
The Fraud Triangle identifiespressure,opportunity, andrationalizationas the key elements contributing to fraud.
Employee support programs help alleviate pressures, such as financial stress or workplace dissatisfaction, which could lead employees to commit fraud.

NEW QUESTION # 283
According to Steve Albrecht's research,______is the most common personal characteristic motivating fraudsters, and ________ is the most common organization-environment factor motivating fraudsters.

A. Desire for recognition, lack of separation of duties
B. Revenge: too much trust in key employees
C. High personal debt; lack of separation of duties
D. Living beyond their means, too much trust in key employees

Answer: D

Explanation:
Steve Albrecht's Research on Fraud Motivation:
Personal factors like "living beyond their means" are commonly cited as a driver of fraudulent behavior.
Organizational factors, such as excessive trust in key employees, create opportunities for fraud by reducing oversight and enabling unethical behavior.

NEW QUESTION # 284
A fraud examiner discovers evidence suggesting possible misconduct by a senior executive. The examiner's supervisor instructs him to stop investigating and destroy his working papers. What should the examiner do?

A. Follow instructions because management has authority over the investigation
B. Destroy the working papers after documenting the request
C. Preserve the evidence and act in accordance with professional and legal obligations
D. Ignore the evidence because it involves senior management

Answer: C

Explanation:
Professional standards require fraud examiners to maintain integrity and exercise due professional care. Destroying evidence could compromise the investigation and potentially violate legal obligations. Evidence should be preserved and handled according to applicable policies and laws.

NEW QUESTION # 285
Which of the following is TRUE regarding G20/OECD Principles of Corporate Governance (the Principles)?

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

Answer: C

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 # 286
For Its compliance program to be effective, an organization must perform procedures to ensure management hires only ethical Individuals who exercise a substantial measure of discretion In acting on the organization's behalf

A. True
B. False

Answer: A

Explanation:
Importance of Hiring Ethical Individuals:
Ethical hiring practices are foundational to an effective compliance program. Employees with a high measure of discretion can significantly impact organizational behavior and risk.
Pre-hiring background checks, ethical screening, and thorough interviews help mitigate the risk of unethical behavior.

NEW QUESTION # 287
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