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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Fraud Risk Management and Deterrence	25%	- Fraud prevention strategies and programs - Monitoring and continuous improvement
Fraud Prevention Framework	25%	- Fraud risk governance and oversight - Fraud risk assessment processes
Internal Controls and Fraud Prevention	25%	- Fraud detection and prevention controls - Internal control design and effectiveness
Corporate Governance and Ethics	25%	- Code of conduct and compliance programs - Ethical culture and tone at the top

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q154-Q159):

NEW QUESTION # 154
The objectives of a fraud risk management program include:

A. All of the above
B. Proactively identifying fraud risks
C. Limiting the damage caused by fraud occurrences
D. Punishing fraud perpetrators

Answer: A

Explanation:
Effective fraud risk management includes preventative, detective, and corrective measures.
Conclusion: All the listed objectives are essential components of a fraud risk management program.

NEW QUESTION # 155
A manager intentionally overrides purchasing controls to expedite a legitimate emergency purchase. Which statement is MOST accurate?

A. Override automatically strengthens controls
B. Emergency situations eliminate control concerns
C. Management override always constitutes fraud
D. Management override can create risk even when the underlying purpose is legitimate

Answer: D

Explanation:
Management override is not necessarily fraudulent, but bypassing controls increases risk. Even legitimate exceptions should be documented, monitored, and approved to prevent abuse and preserve control effectiveness.

NEW QUESTION # 156
Which of the following statements regarding recommended vendor due diligence procedures is MOST ACCURATE?

A. An organization should request that new vendors fill out a questionnaire about their background immediately after signing a contract with them.
B. An organization should avoid revealing that it is seeking information about potential vendors prior to starting a relationship with them.
C. An organization should include a clause in the contract requiring the vendor to report any misconduct before entering into an agreement with them.
D. An organization should subject vendors to an internal audit conducted by the organization's own auditors before agreeing to do business with them.

Answer: C

Explanation:
Including a clause requiring vendors to report misconduct demonstrates a commitment to transparency and ethical standards.
This measure also ensures accountability and provides the organization with critical information about potential issues.

NEW QUESTION # 157
Which of the following is a TRUE statement regarding the role of a well-designed organizational structure as part of an anti-fraud program?

A. Displaying organizational and departmental hierarchies can help fraudsters select their targets.
B. Effectively documenting and communicating the organizational structure to all employees can help prevent fraud.
C. Formally establishing and communicating the proper flow of information in an organization can hinder its fraud prevention initiatives.
D. A confused organizational structure makes it harder for a fraudster to perpetrate and conceal their misdeeds.

Answer: B

Explanation:
A clearly defined organizational structure contributes to accountability and reduces fraud risks.
According to the ACFE manual:
"An effectively documented and communicated structure helps prevent fraud by providing clear lines of authority and responsibility and ensuring appropriate oversight."

NEW QUESTION # 158
The Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance defines what as `the continual iterative process of obtaining information and sharing it throughout the entity'?

A. Governance and culture
B. Strategy and objective-setting
C. Performance
D. Information, communication, and reporting

Answer: D

Explanation:
Information, communication, and reporting involve the continual process of gathering and sharing relevant information across an organization to support decision-making and risk management.
This ensures that all stakeholders are informed and that information flows effectively to enhance organizational performance.

NEW QUESTION # 159
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