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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q97-Q102):

NEW QUESTION # 97
An organization discovers that a purchasing manager approved contracts for a vendor secretly owned by a close friend. The manager did not receive any payments. Which fraud risk is MOST relevant?

A. Conflict of interest
B. Financial statement fraud
C. Payroll fraud
D. Cash larceny

Answer: A

Explanation:
A conflict of interest exists when personal relationships may improperly influence business decisions. Direct financial gain is not required. The undisclosed relationship can impair objectivity and create opportunities for favoritism that harm the organization.

NEW QUESTION # 98
Which of the following is an example of organizational crime?

A. Management of several construction companies engaging In bid rigging
B. An accounting clerk forging company checks to herself
C. A salesman offering bribes to secure a contract
D. A doctor conspiring with patients to Tile false health care insurance claims

Answer: A

Explanation:
Definition of Organizational Crime:
Organizational crime involves illegal actions conducted by or on behalf of organizations to benefit the organization or its management.
Why D is Correct:
Bid rigging is a classic example of organizational crime, where multiple companies collude to manipulate competitive bidding processes for mutual benefit.

NEW QUESTION # 99
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines____________ as "a process, effected by an entity's board of directors, management, andother personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance."

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

Answer: D

Explanation:
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.

NEW QUESTION # 100
Which of the following is a TRUE statement regarding the components of the Committee of Sponsoring Organizations of the Treadway Commission's COSO Internal Control--Integrated Framework the Framework?

A. Determining the effectiveness of an organization's internal control system involves assessing whether all of the identified components are operating together in an integrated manner.
B. The Framework identifies 12 components of internal control that must all be in place for the internal control system to be effective.
C. Determining the effectiveness of an organization's internal control system involves assessing whether the identified components meet minimum regulatory requirements.
D. Ethical culture is one of the primary components of internal control identified in the Framework.

Answer: A

Explanation:
The manual explains that COSO's Internal Control--Integrated Framework contains five components of internal control: control environment, risk assessment, control activities, information and communication, and monitoring. It then states that the effectiveness of internal controls can be determined by assessing whether each of the five components is in place and functioning effectively and whether the five components are operating together in an integrated manner. That language directly supports option B. Ethical culture is important, but it is not listed as one of the five primary COSO components. Likewise, the framework does not define effectiveness simply by reference to minimum regulatory requirements, and it does not identify 12 components. Accordingly, option B is the accurate statement under the manual.

NEW QUESTION # 101
According to behaviorists such as B. F. Skinner, which of the following scenarios is MOST LIKELY to occur when an undesired behavior is punished?

A. The behavior will not be affected by the punishment
B. The behavior will return when punishment ceases
C. The behavior will be permanently suppressed
D. The behavior will occur more frequently.

Answer: B

NEW QUESTION # 102
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