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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q186-Q191):

NEW QUESTION # 186
Rosie, a Certified Fraud Examiner (CFE), conducted a fraud examination for her company that led to a confession of guilt from Dean. Which of the following statements in Rosie's verbal report to management would violate the ACFE Code of Professional Ethics?

A. "Dean confessed to embezzlement."
B. "Dean is guilty of embezzlement."
C. "The evidence does not support Dean's confession."
D. "Dean's confession is supported by the evidence."

Answer: B

NEW QUESTION # 187
Joanna is leading the fraud risk assessment process for her organization. Which of the following considerations about the fraud risk assessment process is MOST ACCURATE and should be incorporated into Joanna's plans?

A. The fraud risk assessment is most effective when management's influence on the process is limited.
B. If the individuals conducting the fraud risk assessment believe that fraud could not happen within the organization, then the assessment process should reflect that belief.
C. To ensure the independence of the team members, a consultant or another external party must conduct the fraud risk assessment.
D. The fraud risk assessment can be conducted effectively by people inside or outside of the organization.

Answer: D

Explanation:
Comprehensive and Detailed in Depth Explanation:
Fraud risk assessments can be effectively conducted by internal personnel or external consultants. The key is that they must be conducted objectively and with due professional care. There is no requirement that they be conducted only externally (eliminating A), nor should biases about the improbability of fraud influence the assessment scope (eliminating B). Management involvement can be helpful when balanced appropriately-it should not be unduly limited (eliminating D).

NEW QUESTION # 188
According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:

A. The continued pressures of a culture that rewards affluence and success
B. The increased constraints of the regulatory environment for businesses
C. The economy's increased reliance on credit
D. The increased opportunity for wrongdoing as a result of advancing information technologies

Answer: B

NEW QUESTION # 189
During a fraud risk assessment, the assessment team determines that it would like to observe the interactions among several employees as they collectively discuss the organization's current fraud awareness training. Which of the following techniques would be MOST HELPFUL for the team to use in gathering this information?

A. Anonymous feedback mechanisms
B. Focus groups
C. Interviews
D. Surveys

Answer: B

NEW QUESTION # 190
Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

A. Recognition of the importance of the role of stakeholders in corporate governance
B. A request that governments have in place an appropriate framework to support good corporate governance practices
C. Support for establishing stronger protection for foreign shareholders than for domestic shareholders
D. Guidance regarding appropriate board structures, responsibilities, and procedures

Answer: C

Explanation:
* Understanding G20/OECD Principles of Corporate Governance:These principles provide a framework to improve corporate governance worldwide. Key elements include board responsibilities, shareholder rights, equitable treatment, and stakeholder roles.
* Analysis of Options:
* A. Guidance on board structures: This is included in the principles to ensure effective governance and oversight.
* C. Framework for corporate governance: Governments are encouraged to create legal and regulatory frameworks supporting corporate governance.
* D. Stakeholder importance: Stakeholders' roles in governance are recognized, acknowledging their contribution to sustainable business practices.
* B. Stronger protection for foreign shareholders: The principles advocate for equitable treatment of all shareholders, not preferential treatment for any group.
* Conclusion:Option B contradicts the principle of equitable treatment, making it the correct answer.
References:G20/OECD Principles of Corporate Governance documentation.

NEW QUESTION # 191
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