CFE-Fraud-Prevention Certification Sample Questions | CFE-Fraud-Prevention Interactive Course

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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Fraud Prevention and Deterrence	25%	- Whistleblowing and reporting mechanisms - Ethics and corporate governance - Monitoring, auditing, and continuous improvement - Fraud prevention programs and frameworks - Anti-fraud policies and procedures - Fraud risk governance and organizational culture - Fraud deterrence strategies and controls - Internal control systems and evaluation - Fraud risk assessment

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q83-Q88):

NEW QUESTION # 83
Which of the following is a responsibility of an organization's board of directors?

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

Answer: C

NEW QUESTION # 84
Which of the following is TRUE regarding the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control--Integrated Framework (the Framework)?

A. Determining the effectiveness of an organization's internal control system involves assessing whether all of the identified components are in place and functioning effectively.
B. Independent oversight is one of the primary components of internal control identified in the Framework.
C. Determining the effectiveness of an organization's internal control system involves assessing whether the identified components meet minimum legal and compliance requirements.
D. The Framework identifies ten components of internal control that must all be in place for the internal control system to be effective.

Answer: A

NEW QUESTION # 85
Which of the following is FALSE regarding a fraud risk assessment?

A. The objective of the assessment is to help the organization identify what makes it most vulnerable to fraud.
B. The assessment team should consider how employees behave as part of its assessment
C. The assessment should be used to improve employee fraud awareness
D. The designation of an area as high risk should only occur if the assessment has conclusively revealed that fraud is occurring there.

Answer: D

Explanation:
Purpose of Fraud Risk Assessment:
The goal is to identify vulnerabilities to fraud and implement preventive measures, not to wait for conclusive evidence of fraud before designating high-risk areas.
Proactive Identification:
High-risk areas are identified based on susceptibility to fraud (e.g., lack of controls, high cash transactions), even if no fraud has been detected. This approach allows organizations to act preemptively.
Improving Fraud Awareness:
Employee education and behavior monitoring are integral components of the assessment process to reduce fraud risks.
Incorrect Assumption in D:
Waiting for conclusive evidence contradicts the proactive nature of fraud risk assessment and undermines its preventative function.

NEW QUESTION # 86
Which of the following is among the board of directors' primary responsibilities related to fraud risk management?

A. Punishing fraud perpetrators discovered through fraud risk management activities
B. Designing the fraud risk management program
C. Implementing the fraud risk management program
D. Overseeing the organization's fraud risk management activities

Answer: D

Explanation:
Board Responsibilities in Fraud Risk Management:
The board plays a critical role in overseeing the organization's fraud risk management activities to ensure accountability and effective governance.
Why A is Correct:
The board provides high-level oversight but does not typically involve itself in the design or implementation of the fraud risk management program.

NEW QUESTION # 87
International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the establishment of anti-fraud internal controls within an organization.

A. False
B. True

Answer: A

Explanation:
ISA 240 and Auditors' Responsibilities:
ISA 240 clarifies that the responsibility for establishing and maintaining internal controls rests with the organization's management, not the auditors.
Auditors are responsible for evaluating the adequacy of internal controls and assessing fraud risks during an audit.
Why B is Correct:
Management is accountable for designing anti-fraud controls, while auditors provide oversight and recommendations based on their assessments.

NEW QUESTION # 88
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