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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q10-Q15):

NEW QUESTION # 10
Which of the following is TRUE regarding G20/OECD Principles of Corporate Governance (the Principles)?

A. The Principles state that an entity's corporate governance framework should discourage active cooperation between corporations and stakeholders in creating wealth.
B. The Principles state that an entity's corporate governance framework should ensure the equitable treatment of all shareholders.
C. The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them
D. The Principles are intended to be applicable in developed economies but not in emerging markets.

Answer: B

Explanation:
G20/OECD Principles Overview:
The G20/OECD Principles of Corporate Governance are international guidelines aimed at enhancing economic efficiency and promoting stable financial systems.
Equitable Treatment of Shareholders:
The principles stress fairness and the protection of all shareholders' rights, particularly minority shareholders, ensuring they are treated equally.
Why D is Correct:
Equitable treatment is a fundamental tenet of the Principles, which strive to maintain trust and integrity in governance practices across jurisdictions.

NEW QUESTION # 11
Which of the following is NOT one of the three general approaches used to control corporate crime?

A. Media blacklisting of the organization
B. Strong intervention of the government
C. Consumer action to force change
D. Voluntary changes in corporate attitudes and structure

Answer: A

Explanation:
Three General Approaches to Controlling Corporate Crime:
Government Intervention:Strong regulations and enforcement to ensure accountability.
Voluntary Corporate Changes:Encouraging ethical practices through organizational policies.
Consumer Action:Pressure from consumers demanding corporate responsibility.
Why D is Incorrect:
Media blacklisting is not a formal or systematic approach to controlling corporate crime. It is a consequence rather than a preventive or corrective measure.

NEW QUESTION # 12
According to Silk and Vogel's research, which of the following is one of the ways that businesses rationalize illegal conduct?

A. Corporate violations that involve large sums of money are often spread among so many organizations that each gains very little individually.
B. Government regulations are justified because the additional costs of regulations and bureaucratic procedures increase government profits.
C. Violations are caused by innocent errors in judgment rather than economic necessity.
D. Government regulation is unnecessary because the matters being regulated are unimportant.

Answer: A

Explanation:
Silk and Vogel's research found that organizations often rationalize unethical or illegal behavior by diffusing responsibility across a group, thus minimizing perceived individual culpability.
This"shared guilt" justification is reflected in option D. The other options either misunderstand the research or do not reflect actual rationalizations used in white-collar crime contexts.

NEW QUESTION # 13
Hart, Inc. hired Kathleen, a risk management expert, to design a risk management program for the organization. Kathleen should focus on balancing which of the following two factors when creating the program?

A. The organization's internal controls and its financial reporting model.
B. The organization's objectives and available resources.
C. Management's risk appetite and the organization's ability to meet its objectives.
D. Management's risk appetite and relevant regulatory requirements.

Answer: C

NEW QUESTION # 14
Which statement BEST describes fraud deterrence?

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

Answer: A

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 # 15
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