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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 - Ethics 1. Ethical considerations in fraud examination - Corporate Governance 1. Internal controls 2. Board oversight 3. Roles and responsibilities - Management's Role 1. Fraud risk assessment 2. Building anti-fraud programs

Section

Objectives

Topic 1: Fraud Prevention and Deterrence

- Auditors' Role

1. Fraud detection responsibilities

- Ethics

1. Ethical considerations in fraud examination

- Corporate Governance

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

- Management's Role

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q67-Q72):

NEW QUESTION # 67
Which of the following is the MOST EFFECTIVE way for management to respond to incidents of fraud within an organization?

A. Punishing frauds only if they have a significant financial impact
B. Maintaining a policy that allows employees one warning before they are terminated for committing fraud
C. Reporting known incidents of fraud to law enforcement
D. Keeping all known incidents of fraud private to protect the identities of parties involved

Answer: C

Explanation:
The Fraud Prevention Programs chapter states that management's handling of known fraud incidents is an important part of the organization's anti-fraud program. The manual explains that a company must make clear it has zero tolerance for fraud and that failing to punish perpetrators consistently makes the fraud prevention program less effective, if not useless. It further notes that having a public record of the incident can be important and specifically says that reporting known incidents of fraud to law enforcement can be an effective step in making the organization's zero-tolerance stance clear. This approach reinforces deterrence, demonstrates seriousness, and supports consistent consequences. Therefore, among the listed choices, reporting known incidents of fraud to law enforcement is the most effective response.

NEW QUESTION # 68
Having specialized departments within a company often increases the overall risk ot traud by the organization.

A. True
B. False

Answer: A

NEW QUESTION # 69
Which of the following is a detective anti-fraud control?

A. Fraud awareness training
B. Hiring policies and procedures
C. Separation of duties
D. Independent reconciliations

Answer: C

NEW QUESTION # 70
The objectives of a fraud risk management program include

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

Answer: D

NEW QUESTION # 71
Jody has been working at ABC Corp. for ten years. He steals funds from the company and tells himself that the company owes it to him for his "unrewarded hard work and loyalty" This situation BEST illustrates which leg of the Fraud Triangle?

A. Perceived non-shareable financial need
B. Lack of personal Integrity
C. Rationalization
D. Perceived opportunity

Answer: C

NEW QUESTION # 72
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