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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q58-Q63):

NEW QUESTION # 58
In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:

A. The organization's incentive programs
B. All of the above
C. The possibility of management's override of controls
D. Risks to the organization's reputation

Answer: B

NEW QUESTION # 59
Which of the following BEST reduces the risk of collusion among employees?

A. Reducing management oversight
B. Relying solely on segregation of duties
C. Eliminating internal audits
D. Independent monitoring and surprise reviews

Answer: D

Explanation:
Collusion can defeat many traditional controls, including segregation of duties. Independent monitoring, data analytics, management reviews, and surprise audits create additional layers of detection that make collusive schemes harder to conceal.

NEW QUESTION # 60
Management at ABC Company wants to transfer one of the risks identified during the company's fraud risk assessment process. Which of the following actions would be MOST APPROPRIATE to support this response?

A. Discontinuing the underlying activity completely
B. Purchasing fidelity insurance to protect against the associated risk of loss
C. Implementing additional preventive and detective controls
D. Deciding not to implement any responsive measures

Answer: B

NEW QUESTION # 61
Pieter, a manager at Solox Corp., oversees the fraud training for the organization's employees.
He is reviewing the training for the coming year. Which of the following actions should Pieter take to ensure that Solox's employee anti-fraud education program is effective?

A. Include detailed descriptions of the organization's anti-fraud controls.
B. Include common characteristics that lead individuals to commit fraud.
C. Restrict training to formal live, in-person sessions required of all full-time, lower-level employees.
D. Require the training to only be presented by organizational executives or anti-fraud professionals.

Answer: B

NEW QUESTION # 62
International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the establishment of anti-fraud internal controls within an organization.

A. False
B. True

Answer: A

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 # 63
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