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

Section	Weight	Objectives
Management's Fraud-Related Responsibilities	10–15%	- Internal control and oversight duties - Reporting obligations and accountability - Roles in prevention, detection, and deterrence
Fraud Prevention Programs	15–20%	- Code of ethics and organizational culture - Whistleblower systems and reporting channels - Design, implementation, and monitoring - Training and awareness initiatives
Fraud Risk Assessment	15–20%	- Identifying and prioritizing risks - Process and methodology - Risk response and mitigation strategies - Continuous assessment and improvement
White-Collar Crime	15–20%	- Organizational vs occupational crime - Prosecution and legal aspects - Impacts on individuals and society - Fraud triangle and occupational fraud trends - Rationalization and control mechanisms - Organizational opportunity and contributing factors
Corporate Governance	5–10%	- Framework and core principles - Guidance sources (OECD, Treadway Commission) - Definition and key stakeholders
Understanding Criminal Behavior	5–10%	- Differential reinforcement, rational choice, routine activities theory - Theories: differential association, social control, social learning - Behavior modification: punishment vs reinforcement
ACFE Code of Professional Ethics	5–10%	- Ethical obligations and compliance - Principles and standards of conduct

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q219-Q224):

NEW QUESTION # 219
Devon, an employee at Tilly Corp., repeatedly demonstrates a negative attitude when working with other departments. To address this behavior, Devon's manager tells him that he is no longer allowed to lead cross- departmental projects. This is an example of what type of behavioral response?

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

Answer: C

Explanation:
This scenario is an example of punishment. Punishment involves introducing a consequence (in this case, the loss of responsibility for cross-departmental projects) to discourage undesirable behavior. The manager uses this approach to address Devon's negative attitude and to promote better cooperation with other departments in the future.
====

NEW QUESTION # 220
In the context of a fraud examination, integrity requires which of the following?

A. Avoidance of differences of opinion on all material matters
B. Prioritization of desires for personal gain over the interests of clients
C. The ability to conceal errors to preserve the reliability of the work performed
D. A well-developed sense of moral philosophy and the ability to distinguish right from wrong

Answer: D

NEW QUESTION # 221
Christopher is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While conducting his audit procedures, he discovers evidence of a fraud involving Jeffrey, the company's chief executive officer (CEO). Which of the following options is Christopher's BEST response to these findings?

A. Christopher should confront Jeffrey with his audit findings and try to get a confession.
B. Christopher should immediately report his findings to the relevant government authority.
C. Christopher should not disclose his findings to any other parties due to legal liability.
D. Christopher should report his findings to those charged with governance of the organization.

Answer: D

Explanation:
Under ISA 240, when an auditor identifies or suspects fraud involving management, especially senior management, the auditor must communicate the matter to those charged with governance unless clearly inappropriate. Because Jeffrey is the CEO, reporting directly to him would not be appropriate. The auditor should not immediately report to a government authority unless law, regulation, or professional duty requires external reporting. The auditor also should not remain silent simply because legal liability might exist.
Confronting the CEO to obtain a confession is not the auditor's role and could compromise the audit, investigation, or evidence. Those charged with governance, such as the board or audit committee, are responsible for oversight and should be informed of suspected senior management fraud. Therefore, option B is correct.

NEW QUESTION # 222
Which of the following is FALSE regarding the fraud risk assessment learn?

A. The team should consist of individuals with diverse knowledge, skills, and perspectives
B. The team size should be limited to a maximum of three individuals
C. The team members might include both internal and external sources.
D. The team members should have experience in gathering and eliciting information

Answer: B

NEW QUESTION # 223
Professional auditing standards suggest that auditors incorporate an "element of predictability" in the selection of auditing procedures to be performed so that they ensure the same areas are tested in the same manner during each audit.

A. False
B. True

Answer: A

Explanation:
Professional Auditing Standards:
* Standards such as ISA and GAAS emphasize the need for "unpredictability" in audit procedures to prevent fraudulent actors from anticipating audit actions.
Why B is Correct:
* Predictability undermines the effectiveness of audits by allowing individuals to manipulate activities in areas repeatedly tested in the same way.
References:
* ISA standards on fraud risk highlight the importance of incorporating unpredictability in audit approaches.

NEW QUESTION # 224
......

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