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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Fraud Risk Management and Deterrence	25%	- Monitoring and continuous improvement - Fraud prevention strategies and programs
Corporate Governance and Ethics	25%	- Code of conduct and compliance programs - Ethical culture and tone at the top
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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q174-Q179):

NEW QUESTION # 174
Luis, the internal audit manager for Oak Corporation, is working to formally incorporate the company's fraud risk assessment into its audit process. Which of the following is NOT a way that Oak's audit team should use the fraud risk assessment process and results as part of their audits?

A. To validate whether the organization is appropriately managing moderate-to-high fraud risks.
B. To confirm whether there is conclusive evidence that fraud is occurring within the company.
C. To inform the development of audit programs for areas that have been identified as having a high risk of fraud.
D. To design audit tests to evaluate whether fraud risk controls are operating effectively.

Answer: B

NEW QUESTION # 175
Which of the following is NOT one of the three general approaches used to control corporate crime?

A. Strong intervention of the government
B. Withdrawal of financial institution funding
C. Voluntary changes in corporate attitudes and structure
D. Consumer action to force change

Answer: B

Explanation:
Common approaches include government intervention, consumer action, and voluntary corporate changes.
Financial institution funding is not typically listed as a direct control mechanism for corporate crime.

NEW QUESTION # 176
Which of the following statements is FALSE?

A. Most experts agree that it is harder to detect frauds than to prevent them
B. Conducting covert audits is among the most effective fraud prevention methods
C. Controls are not effective in preventing theft and fraud If those at risk do not know of their presence
D. Educating employees about company hotlines and reporting programs increases their perception of detection

Answer: B

Explanation:
Fraud Prevention Methods:
Prevention strategies often focus on education, awareness, and robust controls rather than covert methods. While covert audits can detect fraud, they are not primarily preventive.
Why D is False:
Covert audits are reactive and focused on identifying existing fraud, not preventing it.

NEW QUESTION # 177
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 # 178
Which of the following statements is MOST ACCURATE regarding an organization's fraud risk management program?

A. Formal sanctions for intentional noncompliance should be kept private and only shared if a party absolutely needs to know.
B. Systems to monitor and identify breaches in compliance must be included in the fraud risk management program.
C. Punishment for intentional noncompliance should be individualized based on the offender's personal circumstances.
D. All employees at the organization should be responsible for monitoring compliance with the program.

Answer: B

NEW QUESTION # 179
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