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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Fraud Prevention and Deterrence	25%	- Internal control systems and evaluation - Fraud prevention programs and frameworks - Anti-fraud policies and procedures - Fraud risk assessment - Whistleblowing and reporting mechanisms - Ethics and corporate governance - Fraud deterrence strategies and controls - Monitoring, auditing, and continuous improvement - Fraud risk governance and organizational culture

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CFE-Fraud-Prevention New Question & Latest CFE-Fraud-Prevention Test Notes

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q18-Q23):

NEW QUESTION # 18
Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

A. Recognition of the importance of the role of stakeholders in corporate governance
B. Support for establishing stronger protection for foreign shareholders than for domestic shareholders
C. Guidance regarding appropriate board structures, responsibilities, and procedures
D. A request that governments have in place an appropriate framework to support good corporate governance practices

Answer: B

Explanation:
Understanding G20/OECD Principles of Corporate Governance:These principles provide a framework to improve corporate governance worldwide. Key elements include board responsibilities, shareholder rights, equitable treatment, and stakeholder roles.

NEW QUESTION # 19
Which statement BEST describes fraud deterrence?

A. Fraud deterrence eliminates the need for internal controls
B. Fraud deterrence seeks to reduce the likelihood of fraud through prevention and detection measures
C. Fraud deterrence focuses only on punishment after fraud occurs
D. Fraud deterrence guarantees fraud will never occur

Answer: B

Explanation:
Fraud deterrence works by reducing opportunities and increasing the perceived likelihood of detection. Effective deterrence includes strong controls, ethics programs, monitoring systems, training, reporting mechanisms, and consistent enforcement.

NEW QUESTION # 20
An effective system of anti-fraud controls

A. Increases the perception that fraud will be detected
B. Focuses more on detective controls than preventive controls
C. Fully eliminates the risk of fraud
D. Focuses more on preventive controls than detective controls

Answer: D

Explanation:
Purpose of Anti-Fraud Controls:
Preventive controls deter fraud before it occurs, making them the primary focus of an effective anti- fraud program.
Detective controls identify fraud after it has occurred, serving as a secondary line of defense.

NEW QUESTION # 21
During an external audit of an organization's financial statements, Saskia, the external auditor, uncoverssignificant internal control deficiencies at the organization. She believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Saskia do regarding these findings?

A. Saskia should provide a written communication about her findings to the relevant regulatory agencies.
B. Saskia should suspend the current audit engagement and begin a new audit focused on the internal control deficiencies.
C. Saskia should communicate the deficiencies in writing to those charged with governance.
D. Saskia should withdraw from the audit engagement immediately and issue a disclaimer on any prior work performed.

Answer: C

Explanation:
ISA 265 requires that significant deficiencies in internal control identified during an audit be communicated in writing to those charged with governance. The auditor is not obligated to inform regulatory agencies unless required by law (eliminating A). Internal control audits are not separate engagements under standard financial statement audits (eliminating B). Withdrawalfrom the engagement is a last resort and only appropriate under severe circumstances beyond internal control issues (eliminating D).

NEW QUESTION # 22
A fraud examiner is preparing a report. Which action would violate professional standards?

A. Reporting conclusions supported by evidence
B. Expressing an opinion that a suspect is guilty of fraud
C. Identifying control weaknesses observed during the examination
D. Recommending control improvements

Answer: B

Explanation:
Under ACFE standards, a fraud examiner may present facts, evidence, and professional conclusions regarding technical matters. However, determining guilt or innocence is the responsibility of courts and legal authorities, not fraud examiners.

NEW QUESTION # 23
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