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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Internal Controls and Fraud Prevention	25%	- Internal control design and effectiveness - Fraud detection and prevention controls
Topic 2: Fraud Prevention Framework	25%	- Fraud risk governance and oversight - Fraud risk assessment processes
Topic 3: Fraud Risk Management and Deterrence	25%	- Fraud prevention strategies and programs - Monitoring and continuous improvement
Topic 4: 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 (Q36-Q41):

NEW QUESTION # 36
Which of the following is NOT a responsibility of the organization's board of directors?

A. Assessing the strategy and underlying purpose of management's decisions and actions
B. Serving as the intermediaries between shareholders and management
C. Directing employees to execute business activities
D. Acting as guardians of the organization's resources and assets

Answer: C

Explanation:
Responsibilities of the Board of Directors:
The board is primarily responsible for oversight, governance, and ensuring the organization operates in the best interest of stakeholders. Key responsibilities include:
Acting as intermediaries between shareholders and management.
Safeguarding resources and assets.
Assessing management's strategies and decisions.
Why C is Correct:
Directing employees is a management responsibility, not a board function. The board focuses on oversight rather than operational execution.

NEW QUESTION # 37
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. Automatically designate the purchasing function as a high-risk area.
B. Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.
C. Confront Brandon about the disagreements and discuss how they increase the organization's risk of fraud-
D. Have someone else perform the fraud risk assessment work related to the purchasing function

Answer: B

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 # 38
Mario is charged with implementing a fraud reporting program on behalf of his organization.
Which of the following is a best practice that Mario should follow to ensure that the program is successful?

A. Inform employees that the names of all individuals who report misconduct will be shared with the organization's management and law enforcement.
B. Inform employees that they can make their report anonymously (where permitted by law).
C. Inform employees that they will be held accountable for reporting any tips that cannot be verified.
D. Inform employees that they are required to report any information about suspected fraud only to their direct supervisor.

Answer: B

Explanation:
Allowing employees to report fraud anonymously is a best practice in fraud reporting programs.
This encourages whistleblowers to come forward without fear of retaliation or reprisal, increasing the likelihood of fraud detection. Transparency about confidentiality policies further supports employee trust in the reporting system.

NEW QUESTION # 39
According to International Organization for Standardization (ISO) 31000:2018, an effective and efficient risk management program contains all of the following principles EXCEPT:

A. The program is integrated into only high-risk organizational activities.
B. The program is structured and comprehensive.
C. The program is based upon the best available information.
D. The program is customized and proportionate to the organization's operations and objectives.

Answer: A

Explanation:
ISO 31000:2018 emphasizes that effective risk management must be integrated into all activities across the organization--not just high-risk ones.
"An effective and efficient risk management program... is integrated into all organizational activities, is structured and comprehensive, and is customized and proportionate to the organization's operations and objectives."

NEW QUESTION # 40
Which principle of corporate governance pertains to the disclosure of all material matters that the shareholders need to make timely and informed decisions regarding their investment in the company?

A. Accountability
B. Transparency
C. Responsibility
D. Fairness

Answer: B

Explanation:
Corporate Governance Principles:
Transparency refers to disclosing material matters, enabling shareholders to make informed decisions.
This includes providing timely and accurate information about the company's financial performance, risks, and governance practices.

NEW QUESTION # 41
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