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| Section | Objectives |
|---|
| Topic 1: Fraud Prevention and Deterrence | - Auditors' Role
- 1. Fraud detection responsibilities
- Management's Role
- 1. Building anti-fraud programs
- 2. Fraud risk assessment
- Corporate Governance
- 1. Roles and responsibilities
- 2. Internal controls
- 3. Board oversight
- Ethics
- 1. Ethical considerations in fraud examination
|
>> CFE-Fraud-Prevention-and-Deterrence Latest Test Prep <<
Updated ACFE CFE-Fraud-Prevention-and-Deterrence Exam Questions For Accurately Prepare [2026]
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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q305-Q310):
NEW QUESTION # 305
A professional organization's code of conduct serves which of the following purposes?
- A. It functions as a reference and benchmark for ethical guidance.
- B. It offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.
- C. It replaces the need for individuals to consult their own principles.
- D. It acts as a substitute for legal and regulatory requirements that apply to the profession.
Answer: A
NEW QUESTION # 306
According to the 2020 Report to the Nations, which of the following is the MOST COMMON method by which frauds are detected?
- A. External audit
- B. Confession
- C. Internal audit
- D. Tips
Answer: D
NEW QUESTION # 307
According to the Fraud Risk Management Guide, a joint publication by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the ACFE, under which principle should an organization select, develop, and deploy preventive and detective fraud measures to mitigate the risk of fraud events occurring or not being detected in a timely manner?
- A. Fraud risk management monitoring activities.
- B. Fraud risk assessment.
- C. Fraud control activities.
- D. Fraud investigation and corrective action.
Answer: C
Explanation:
The Fraud Risk Management Guide identifies fraud control activities as the principle under which organizations select, develop, and deploy preventive and detective controls. Preventive controls are designed to reduce the opportunity for fraud before it occurs, while detective controls are designed to identify fraud or control failures after they occur. Together, they mitigate the risk that fraud events will happen or go undetected for too long. Option A relates to monitoring the fraud risk management program over time. Option B concerns identifying and assessing fraud risks. Option C concerns investigating suspected fraud and taking corrective action after misconduct is identified. Because the question specifically refers to preventive and detective measures, the correct principle is fraud control activities. Therefore, option D is correct.
NEW QUESTION # 308
Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To most effectively reinforce an anti-fraud culture, management should:
- A. Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
- B. implement two separate sets of ethics policies, one for management and one for employees
- C. Create an environment in which employees feel safe challenging management's decisions
- D. All of the above
Answer: C
Explanation:
* Reinforcing an Anti-Fraud Culture:A strong ethical tone at the top is crucial to reducing fraud risk.
Employees must feel empowered to report concerns without fear of retaliation.
* Analysis of Options:
* A. Using a checklist: While useful, it is not sufficient alone to instill an anti-fraud culture.
* C. Separate ethics policies: A unified ethical standard for all employees fosters trust and consistency.
* B. Safe environment for challenges: This is the most effective method as it promotes transparency, accountability, and whistleblowing.
* Conclusion:Creating a safe and open environment for employees to challenge management's decisions is the most impactful action.
References:ACFE's guidelines on ethical culture and fraud prevention.
NEW QUESTION # 309
Which of the following is an example of organizational crime?
- A. A sales manager using a corporate credit card for personal expenses
- B. Management of several pharmaceutical companies engaging in a price fixing scheme
- C. An HR employee adding a ghost employee to the payroll and misappropriating the paychecks
- D. An insurance claims agent conspiring with customers to file false insurance claims and share the proceeds
Answer: B
NEW QUESTION # 310
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