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

Section	Objectives
Topic 1: Fraud Prevention and Deterrence	- Auditors' Role 1. Fraud detection responsibilities - Management's Role 1. Fraud risk assessment 2. Building anti-fraud programs - Corporate Governance 1. Internal controls 2. Board oversight 3. Roles and responsibilities - Ethics 1. Ethical considerations in fraud examination

Section

Objectives

Topic 1: Fraud Prevention and Deterrence

- Auditors' Role

1. Fraud detection responsibilities

- Management's Role

1. Fraud risk assessment
2. Building anti-fraud programs

- Corporate Governance

1. Internal controls
2. Board oversight
3. Roles and responsibilities

- Ethics

1. Ethical considerations in fraud examination

>> ACFE CFE-Fraud-Prevention-and-Deterrence Pass Exam <<

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q289-Q294):

NEW QUESTION # 289
The internal auditor's fraud-related responsibilities include which of the following?

A. Overseeing management's actions to manage fraud risks
B. Reporting to regulators regarding the entity's vulnerability to fraud
C. Attesting that the organization's financial statements are free of material misstatements caused by fraud
D. Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program

Answer: D

Explanation:
Internal Auditors' Role in Fraud Risk Management:
* Internal auditors evaluate management's commitment to overseeing and addressing fraud risks as part of their assurance role.
Why A is Correct:
* Oversight of fraud risk management is a management responsibility, and internal auditors assess whether this responsibility is effectively retained and executed.
Why Other Options are Incorrect:
* B: Reporting to regulators is not a core responsibility of internal auditors.
* C: Internal auditors provide evaluation, not direct oversight.
* D: Attesting financial statement accuracy is the responsibility of external auditors, not internal auditors.

NEW QUESTION # 290
Which of the following statements regarding recommended vendor due diligence procedures is MOST ACCURATE?

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

Answer: A

Explanation:
* Best Practices for Vendor Due Diligence:
* 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.
* Analysis of Other Options:
* A. Internal audits: While valuable, conducting internal audits of vendors before an agreement is impractical and costly.
* B. Concealing due diligence efforts: Transparency in due diligence helps build trust with vendors.
* C. Post-contract questionnaires: Due diligence must occur before contracts are signed.
* Conclusion:Including a contractual clause about misconduct reporting is the most accurate recommendation.
References:ACFE guidelines on vendor due diligence and fraud prevention.

NEW QUESTION # 291
To address an employee's consistent failure to meet deadlines, a manager removes the employee's ability to work from home This is an example of what type of behavioral response?

A. Negative reinforcement
B. Positive reinforcement
C. None of the above
D. Punishment

Answer: D

Explanation:
* Understanding Behavioral Responses:
* Punishment: Involves removing a privilege or applying a negative consequence to decrease undesired behavior.
* Removing the ability to work from home penalizes the employee for failing to meet deadlines.
* Analysis of Other Options:
* A. Positive reinforcement: Adds a reward for desired behavior.
* B. Negative reinforcement: Removes an unfavorable condition to encourage behavior.
* D. None of the above: Incorrect, as this is clearly punishment.
* Conclusion:The manager's action is an example of punishment.
References:ACFE materials on behavioral psychology and management practices.

NEW QUESTION # 292
Black a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination He did not find fraud, but in Black's opinion the controls he examined were deficient Under the ACFE Code of Professional Ethics Black is not permitted to express his opinion on the deficient controls.

A. False
B. True

Answer: A

Explanation:
* ACFE Code of Professional Ethics on Reporting Findings:
* The Code allows fraud examiners to report on deficiencies in controls if these are relevant to their engagement. Highlighting such deficiencies helps improve the organization's anti-fraud measures.
* Why B is Correct:
* Black is permitted to express his opinion about deficient controls, even if no fraud is found, as long as his conclusions are based on evidence and within the scope of his professional expertise.

NEW QUESTION # 293
Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Smith to encourage his team members to keep their cash drawers in balance?

A. Publicly call out and criticize employees whose cash drawers are over or short.
B. Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.
C. Demote employees who continue to have reconciliation discrepancies
D. Take away an hour of paid time off for each time the drawer is over or short

Answer: B

Explanation:
* Behaviorist Theories on Reinforcement:
* Positive reinforcement is the most effective way to encourage desired behavior by providing rewards for compliance.
* Analysis of Options:
* B. Public criticism: May create resentment and decrease morale.
* C. Loss of paid time off: A punitive measure that may not motivate improvement.
* D. Demotion: Effective for extreme cases but harsh and potentially counterproductive for minor errors.
* Conclusion:Offering a bonus for perfect reconciliation aligns with behaviorist principles of positive reinforcement.
References:ACFE behavioral insights and fraud prevention strategies.

NEW QUESTION # 294
......

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