CFE-Fraud-Prevention-and-Deterrence Visual Cert Exam & Latest CFE-Fraud-Prevention-and-Deterrence Exam Notes

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

Section	Objectives
Fraud Prevention and Deterrence	- Ethics 1. Ethical considerations in fraud examination - 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

Section

Objectives

Fraud Prevention and Deterrence

- Ethics

1. Ethical considerations in fraud examination

- 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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q274-Q279):

NEW QUESTION # 274
Which of the following is TRUE regarding proactive fraud auditing procedures?

A. Implementing proactive fraud audit procedures demonstrates the organization's intention to aggressively look for possible fraudulent conduct.
B. Fraud assessment Questioning techniques are most appropriately used when attempting to determine who might be responsible for a particular fraud scheme.
C. Surprise audit procedures are an effective fraud detection mechanism, but they do not help prevent fraud
D. Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods.

Answer: C

NEW QUESTION # 275
During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization ' s reported revenue amount However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

A. The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.
B. The auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.
C. The auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold
D. The auditors should reconsider the reliability of the audit evidence they have previously obtained.

Answer: D

NEW QUESTION # 276
According to the 2020 Report to the Nations.___________schemes ate the MOST COMMON form of occupational fraud, while_________schemes are the MOST COSTLY form of occupational fraud.

A. Corruption, asset misappropriation
B. Financial statement fraud: corruption
C. Asset misappropriation: financial statement fraud
D. Asset misappropriation; corruption

Answer: B

NEW QUESTION # 277
Which of the following scenarios is the MOST ACCURATE representation of organizational crime?

A. An agreement between all the local floral companies to unnecessarily raise prices.
B. A retail clerk colluding with a friend to commit a scheme involving fraudulent returns.
C. An inventory manager taking home the company's product to sell privately.
D. An accountant uses company funds to pay personal credit card charges.

Answer: A

Explanation:
Comprehensive and Detailed in Depth Explanation:
Organizational crime refers to offenses committed by organizations or their agents to benefit the organization, rather than the individual alone. Price-fixing by a group of floral companies to manipulate market conditions is a classic example of organizational crime. The other options-fraudulent returns, theft of goods, and misuse of company funds-are examples of occupational or individual fraud, which benefit the perpetrator rather than the organization.

NEW QUESTION # 278
Which of the following Is NOT considered a conflict of Interest that Is prohibited under the ACFE Code of Professional Ethics?

A. Undertaking engagements for both sides in a case of an alleged product substitution scheme
B. Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner's ownership interest is disclosed
C. Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
D. Accepting an assignment to secretly infiltrate the fraud examiner's employing organization and transmit inside information to another party

Answer: B

Explanation:
* onflicts of Interest Under the ACFE Code of Professional Ethics:
* Fraud examiners must avoid situations that compromise their objectivity, independence, or professional duties.
* Disclosure of ownership does not eliminate the conflict of interest if it could impair objectivity.
* Analysis of Other Options:
* A, C, and D: All are clear conflicts of interest explicitly prohibited under the ACFE Code.
* Conclusion:Option B is not prohibited under the ACFE Code but remains problematic if disclosure does not adequately address independence concerns.
References:ACFE Code of Professional Ethics-conflict of interest provisions.

NEW QUESTION # 279
......

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