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ACFE CFE-Fraud-Prevention-and-Deterrence Exam Syllabus Topics:

Section	Weight	Objectives
Fraud Risk Assessment	15–20%	- Process and methodology - Risk response and mitigation strategies - Continuous assessment and improvement - Identifying and prioritizing risks
ACFE Code of Professional Ethics	5–10%	- Ethical obligations and compliance - Principles and standards of conduct
Fraud Prevention Programs	15–20%	- Design, implementation, and monitoring - Code of ethics and organizational culture - Training and awareness initiatives - Whistleblower systems and reporting channels
Corporate Governance	5–10%	- Guidance sources (OECD, Treadway Commission) - Definition and key stakeholders - Framework and core principles
White-Collar Crime	15–20%	- Prosecution and legal aspects - Fraud triangle and occupational fraud trends - Rationalization and control mechanisms - Organizational opportunity and contributing factors - Organizational vs occupational crime - Impacts on individuals and society
Management's Fraud-Related Responsibilities	10–15%	- Internal control and oversight duties - Reporting obligations and accountability - Roles in prevention, detection, and deterrence
Understanding Criminal Behavior	5–10%	- Behavior modification: punishment vs reinforcement - Theories: differential association, social control, social learning - Differential reinforcement, rational choice, routine activities theory

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q199-Q204):

NEW QUESTION # 199
Aaron, a government auditor, is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions. Which of the following is TRUE regarding Aaron's consideration of fraud during this engagement?

A. Aaron does not need to comply with the requirements found in International Standard on Auditing 240 as they do not apply to the engagement.
B. Aaron's audit objectives are likely narrower than those of a private-sector financial statement audit.
C. Aaron should remain alert for fraud but does not need to consider the potential for abuse or other misconduct during the audit engagement.
D. Aaron likely does not have the ability to withdraw from the engagement even if fraud is identified during the audit.

Answer: D

Explanation:
Comprehensive and Detailed in Depth Explanation:
Government auditors typically cannot unilaterally withdraw from an audit engagement, even in cases where fraud is identified. Public-sector audits often follow mandates from higher authorities or statutes that require the auditor to continue and report findings to oversight bodies. Additionally, fraud and abuse (including misconduct and misuse of assets) are relevant to government audits under ISSAIs, contrary to A and B.
Option D is incorrect because public-sector audit objectives are often broader, encompassing compliance, performance, and integrity aspects.

NEW QUESTION # 200
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. Consider the knowledge, skill, and ability levels of the individuals who are assigned significant audit responsibilities
B. All of the above
C. Disregard the entity's selection and application of accounting policies concerning complex transactions
D. Incorporate an element of predictability in the selection of auditing procedures to be performed

Answer: D

NEW QUESTION # 201
During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization ' s reported revenue amount However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

A. The auditors should reconsider the reliability of the audit evidence they have previously obtained.
B. The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.
C. The auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.
D. The auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold

Answer: A

NEW QUESTION # 202
According to ACFE research, which of the following is TRUE?

A. Men and women commit similar amounts of occupational frauds.
B. Complaints about family problems is the most reported behavioral red flag displayed by fraud perpetrators.
C. Most employees who commit occupational fraud are first-time offenders.
D. Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.

Answer: C

Explanation:
The ACFE research consistently finds that the majority of occupational fraudsters are first-time offenders.
Specifically, "85% of occupational fraud perpetrators had never been punished or terminated for fraud-related conduct prior to the crimes in this study." Reference:ACFE Fraud Examiners Manual, 2020 International Edition -Fraud Prevention and Deterrence, Section 4.263.

NEW QUESTION # 203
Blue. Inc. is a specialty retailer of customized shipping containers. The company receives a very large order from Green Company, a new customer from a country that is known to have high corruption risks. Which of the following is MOST ACCURATE regarding the due diligence procedures Blue should perform on Green before proceeding with this transaction?

A. Blue should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination.
B. Blue only needs to undertake due diligence procedures if Green is requesting to pay on credit.
C. Blue should consider Green's expected purchasing pattern and method of payment in determining whether to accept the transaction.
D. Blue does not need to undertake any specific due diligence procedures for this transaction.

Answer: C

Explanation:
Due Diligence in High-Corruption Risk Transactions:
* When operating in high-risk environments, enhanced due diligence is critical. This includes evaluating payment methods, transaction patterns, and the customer's reputation.
Why A is Correct:
* Analyzing purchasing patterns and payment methods helps identify red flags such as unusual payment terms or volumes inconsistent with Green's business profile.
Why Other Options are Incorrect:
* B: Due diligence is necessary regardless of payment terms.
* C: Enhanced due diligence for high-risk countries does not constitute discrimination.
* D: Ignoring due diligence poses significant compliance and reputational risks.
References:
* ACFE guidance on due diligence and anti-corruption practices in global commerce.

NEW QUESTION # 204
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