100% Pass 2026 CFE-Fraud-Prevention: Professional Latest Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Cram Materials

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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Fraud Prevention and Deterrence25%- Anti-fraud policies and procedures
- Ethics and corporate governance
- Internal control systems and evaluation
- Fraud deterrence strategies and controls
- Fraud risk assessment
- Fraud prevention programs and frameworks
- Monitoring, auditing, and continuous improvement
- Whistleblowing and reporting mechanisms
- Fraud risk governance and organizational culture

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q173-Q178):

NEW QUESTION # 173
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?

Answer: A

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 # 174
International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the establishment of anti-fraud internal controls within an organization.

Answer: B

Explanation:
ISA 240 and Auditors' Responsibilities:
ISA 240 clarifies that the responsibility for establishing and maintaining internal controls rests with the organization's management, not the auditors.
Auditors are responsible for evaluating the adequacy of internal controls and assessing fraud risks during an audit.
Why B is Correct:
Management is accountable for designing anti-fraud controls, while auditors provide oversight and recommendations based on their assessments.


NEW QUESTION # 175
Which of the following is NOT one of the three elements that have the most influence on crime according to the routine activities theory?

Answer: D

Explanation:
Routine activities theory holds that crime occurs when three elements converge: (1) a motivated offender, (2) a suitable target, and (3) the absence of a capable guardian. "The lack of societal ethics" is not part of this theoretical model.


NEW QUESTION # 176
Which of the following is one of the three general methods used to control corporate crime?

Answer: A


NEW QUESTION # 177
Gian is a manager at Ram Co. and is tasked with building the company's fraud risk management program. As a starting point, Gian wants to formally define the program's objectives. Which of the following is TRUE regarding the process of defining the objectives of the fraud risk management program?

Answer: B


NEW QUESTION # 178
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