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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Fraud Prevention and Deterrence	25%	- Ethics and corporate governance - Whistleblowing and reporting mechanisms - Fraud risk assessment - Monitoring, auditing, and continuous improvement - Internal control systems and evaluation - Fraud prevention programs and frameworks - Anti-fraud policies and procedures - Fraud deterrence strategies and controls - Fraud risk governance and organizational culture

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q104-Q109):

NEW QUESTION # 104
Which of the following Is TRUE regarding an organization's ethics program?

A. In designing the ethics program, management should consider whether the organization currently has any ethical leadership Issues
B. An effective written ethics policy alone is sufficient to communicate management's ethical philosophy and serve as a comprehensive ethics program
C. All of the above
D. To be most effective, access to the organization's ethics policy should be restricted to employees and other Internal parties only

Answer: A

Explanation:
An effective ethics program involves assessing existing issues, such as ethical leadership gaps, and designing policies and practices to address them.

NEW QUESTION # 105
According to professional auditing standards, auditors should do which of the following as part of addressing the assessed risks of material misstatement due to fraud in the financial statements?

A. Disregard the entity's selection and application of accounting policies concerning complex transactions
B. Consider the knowledge, skill, and ability levels of the individuals who are assigned significant audit responsibilities
C. All of the above
D. Incorporate an element of predictability in the selection of auditing procedures to be performed

Answer: D

NEW QUESTION # 106
Which of the following is a responsibility of an organization's board of directors?

A. Assessing the strategy and underlying purpose of management's decisions and actions.
B. Directing employees to organize and execute business activities.
C. Serving as the intermediary between staff-level employees and management.
D. Electing the company shareholders and supervising their decisions and actions.

Answer: A

NEW QUESTION # 107
Which of the following is a TRUE statement regarding fraud risks?

A. Residual risks are risks that are present before the effect of internal controls.
B. The objective of anti-fraud controls is to completely eliminate the inherent fraud risk.
C. The objective of anti-fraud controls is to reduce the residual fraud risk to a level that is significantly lower than the inherent fraud risk.
D. Inherent risks are risks that remain after efforts are made to mitigate fraud risk.

Answer: C

NEW QUESTION # 108
Risk management is focused on balancing the organization's___________with Its____________.

A. Risk appetite, ability to meet its objectives
B. Internal controls; financial reporting model
C. Regulatory requirements, risk appetite
D. Objectives; resources

Answer: A

Explanation:
Focus of Risk Management:
Risk management seeks to balance the organization's risk appetite (the level of risk it is willing to accept) with its ability to achieve objectives.
Why D is Correct:
Effective risk management aligns the organization's risk tolerance with its strategic and operational goals to ensure sustainability and success.

NEW QUESTION # 109
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