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

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

Section

Objectives

Topic 1: Fraud Prevention and Deterrence

- Management's Role

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

- Corporate Governance

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

- Auditors' Role

1. Fraud detection responsibilities

- Ethics

1. Ethical considerations in fraud examination

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q210-Q215):

NEW QUESTION # 210
Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?

A. They assert that a corporate governance framework should ensure that the treatment of shareholders differs based on the class of stock they own.
B. They are intended to be applicable in emerging markets but not in developed economies.
C. They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.
D. They state that a corporate governance framework should promote transparent and fair markets and the efficient allocation of resources.

Answer: D

Explanation:
Comprehensive and Detailed in Depth Explanation:
The G20/OECD Principles of Corporate Governance advocate for transparent and fair markets and the efficient allocation of resources, making Option A the correct statement. These principles are internationally recognized as a standard for policy makers, investors, corporations, and other stakeholders worldwide. The principles are intended to apply to both developed and emerging markets, not justemerging ones (rejecting Option C), and while influential, they are not legally binding mandates (rejecting Option D). They also support the equitable treatment of shareholders, regardless of share class (rejecting Option B).
Reference:Fraud Examiners Manual, 2022, Fraud Prevention and Deterrence, Corporate Governance - Section 4.308.

NEW QUESTION # 211
The internal auditor's fraud-related responsibilities include which of the following?

A. Obtaining reasonable assurance that the organization's financial statements are free of material misstatements caused by fraud
B. Evaluating indicators of fraud and deciding whether any further action is necessary or whether an investigation should be recommended
C. Overseeing management's actions to manage fraud risks
D. Establishing and maintaining effective anti-fraud controls at a reasonable cost

Answer: B

Explanation:
* Internal Auditor's Role in Fraud Risk Management:
* Internal auditors are not directly responsible for establishing or maintaining anti-fraud controls (Option D). This responsibility lies with management.
* They are also not responsible for obtaining reasonable assurance that financial statements are free of fraud (Option A). This is the role of external auditors.
* Oversight of management's fraud risk actions (Option B) is primarily a governance role, not the auditor's direct responsibility.
* Internal auditors focus on identifying and assessing fraud risks, evaluating controls, and recommending further action when necessary.
* Conclusion:Option C aligns with the internal auditor's responsibilities as per the standards outlined in the ACFE's fraud risk management framework.
References:ACFE documentation on internal auditing responsibilities and fraud risk assessments.

NEW QUESTION # 212
Professional auditing standards require that auditors incorporate an "element of unpredictability" in the selection of auditing procedures to be performed.

A. True
B. False

Answer: A

Explanation:
Professional Auditing Standards Requirement:
* Standards such as the International Standards on Auditing (ISA) and Generally Accepted Auditing Standards (GAAS) require auditors to include elements of unpredictability in their audit procedures to reduce the risk of fraud.
Purpose of Unpredictability:
* By varying the scope, timing, and extent of audits, auditors prevent potential fraudsters from anticipating audit procedures and adjusting their behavior.
Why A is Correct:
* This aligns with established auditing principles to enhance fraud detection and maintain audit integrity.

NEW QUESTION # 213
Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

A. Fraud examiners should form the engagement hypothesis without regard to the available preliminary information.
B. Professional skepticism involves maintaining a mindset that no fraud has occurred
C. Fraud examiners should not relax their skeptical attitudes under any circumstances.
D. Professional skepticism means beginning all assignments with the belief that something is amiss.

Answer: C

Explanation:
Professional Skepticism Defined:
Professional skepticism is an attitude that includes a questioning mind and a critical assessment of evidence.
Fraud examiners must remain vigilant to indications of potential fraud throughout an engagement.
Consistent Application:
ACFE standards emphasize that skepticism should be applied consistently, even if initial findings do not indicate fraud, to avoid overlooking potential risks.
Why D is Correct:
Relaxing skepticism can lead to missed evidence or poor judgment, undermining the examination's effectiveness.

NEW QUESTION # 214
During a fraud risk assessment, a focus group would be MOST HELPFUL in which of the following situations?

A. The assessment team would like to observe the interactions of several employees discussing the organization's current fraud awareness training.
B. The assessment team would like to obtain individuals' responses through a formal electronic questionnaire.
C. The assessment team would like to get candid one-on-one feedback from employees in a private setting.
D. The assessment team would like to provide a means for anonymous employee suggestions or responses to questions posed.

Answer: C

NEW QUESTION # 215
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