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ACFE CFE-Fraud-Prevention-and-Deterrence Certification Exam is recommended for professionals who have a background in accounting, finance, law enforcement, or auditing. Candidates must have at least two years of professional experience in a related field to be eligible for the certification exam. CFE-Fraud-Prevention-and-Deterrence exam consists of four sections, including fraud prevention and deterrence, financial transactions, investigation, and legal elements. Certified Fraud Examiner - Fraud Prevention and Deterrence Exam certification exam is computer-based and consists of 500 multiple-choice questions. Candidates must score at least 75% to pass the exam and earn the certification.
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NEW QUESTION # 123
Which of the following is FALSE regarding a fraud risk assessment?
Answer: B
Explanation:
* Purpose of Fraud Risk Assessment:
* The goal is to identify vulnerabilities to fraud and implement preventive measures, not to wait for conclusive evidence of fraud before designating high-risk areas.
* Proactive Identification:
* High-risk areas are identified based on susceptibility to fraud (e.g., lack of controls, high cash transactions), even if no fraud has been detected. This approach allows organizations to act preemptively.
* Improving Fraud Awareness:
* Employee education and behavior monitoring are integral components of the assessment process to reduce fraud risks.
* Incorrect Assumption in D:
* Waiting for conclusive evidence contradicts the proactive nature of fraud risk assessment and undermines its preventative function.
References for All Questions:
* ACFE Code of Professional Ethics.
* Auditor Essentials on fraud prevention and deterrence principles.
* COSO and risk assessment frameworks in internal controls.
NEW QUESTION # 124
Devon, an employee at Tilly Corp., repeatedly demonstrates a negative attitude when working with other departments. To address this behavior, Devon's manager tells him that he is no longer allowed to lead cross-departmental projects. This is an example of what type of behavioral response?
Answer: A
Explanation:
This scenario is an example of punishment. Punishment involves introducing a consequence (in this case, the loss of responsibility for cross-departmental projects) to discourage undesirable behavior. The manager uses this approach to address Devon's negative attitude and to promote better cooperation with other departments in the future.
NEW QUESTION # 125
International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the establishment of anti-fraud internal controls within an organization.
Answer: A
Explanation:
* ISA 240 and Auditors' Responsibilities:
* ISA 240 clarifies that the responsibility for establishing and maintaining internal controls rests with the organization's management, not the auditors.
* Auditors are responsible for evaluating the adequacy of internal controls and assessing fraud risks during an audit.
* Why B is Correct:
* Management is accountable for designing anti-fraud controls, while auditors provide oversight and recommendations based on their assessments.
NEW QUESTION # 126
Josie is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While conducting her audit procedures, she discovers evidence that Carissa, the company's chief financial officer, has been fraudulently manipulating the financial statements. Which of the following is Josie's BEST response to these findings?
Answer: D
Explanation:
According to the ISAs, auditors are required to communicate identified instances of fraud to those charged with governance of the organization. This ensures that the appropriate individuals within the organization are informed and can take necessary corrective actions. Reporting findings to the media or confronting individuals directly is not considered an appropriate course of action.
NEW QUESTION # 127
Which of the following is NOT one of the three general approaches used to control corporate crime?
Answer: D
NEW QUESTION # 128
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