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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Corporate Governance and Ethics	25%	- Ethical culture and tone at the top - Code of conduct and compliance programs
Topic 2: Fraud Prevention Framework	25%	- Fraud risk assessment processes - Fraud risk governance and oversight
Topic 3: Internal Controls and Fraud Prevention	25%	- Fraud detection and prevention controls - Internal control design and effectiveness
Topic 4: Fraud Risk Management and Deterrence	25%	- Fraud prevention strategies and programs - Monitoring and continuous improvement

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q37-Q42):

NEW QUESTION # 37
Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

A. Professional skepticism means beginning all assignments with the belief that something is amiss.
B. Professional skepticism involves maintaining a mindset that no fraud has occurred
C. Fraud examiners should not relax their skeptical attitudes under any circumstances.
D. Fraud examiners should form the engagement hypothesis without regard to the available preliminary information.

Answer: C

Explanation:
Professional Skepticism Defined:
Professional skepticism is an attitude that includes a questioning mind and a critical assessment of evidence. Fraud examiners must remain vigilant to indications of potential fraud throughout an engagement.
Consistent Application:
ACFE standards emphasize that skepticism should be applied consistently, even if initial findings do not indicate fraud, to avoid overlooking potential risks.
Why D is Correct:
Relaxing skepticism can lead to missed evidence or poor judgment, undermining the examination's effectiveness.

NEW QUESTION # 38
Why is vendor due diligence important in anti-fraud programs?

A. It helps identify fraud, corruption, and compliance risks before engagement
B. It replaces procurement controls
C. It eliminates contract negotiations
D. It guarantees vendor profitability

Answer: A

Explanation:
Vendor due diligence evaluates ownership, reputation, sanctions exposure, legal history, and financial stability. Identifying high-risk third parties before engagement helps prevent fraud, corruption, regulatory violations, and reputational damage.

NEW QUESTION # 39
According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO), internal control is defined as:

A. The system enacted to ensure effective oversight of the board of directors, management, and all other parties responsible for an organization's direction, operations, and performance.
B. A process aimed at proactively identifying, assessing, and managing an organization's vulnerabilities to fraud by both internal and external sources.
C. The system that is designed and implemented to eliminate all uncertainty and risk while also ensuring the achievement of organizational goals.
D. A process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.

Answer: C

NEW QUESTION # 40
Joanna is leading the fraud risk assessment process for her organization. Which of the following considerations about the fraud risk assessment process is MOST ACCURATE and should be incorporated into Joanna's plans?

A. To ensure the independence of the team members, a consultant or another external party must conduct the fraud risk assessment.
B. The fraud risk assessment is most effective when management's influence on the process is limited.
C. If the individuals conducting the fraud risk assessment believe that fraud could not happen within the organization, then the assessment process should reflect that belief.
D. The fraud risk assessment can be conducted effectively by people inside or outside of the organization.

Answer: D

Explanation:
Fraud risk assessments can be effectively conducted by internal personnel or external consultants. The key is that they must be conducted objectively and with due professional care.
There is no requirement that they be conducted only externally (eliminating A), nor should biases about the improbability of fraud influence the assessment scope (eliminating B). Management involvement can be helpful when balanced appropriately--it should not be unduly limited (eliminating D).

NEW QUESTION # 41
According to the differential reinforcement theory, behavior is strengthened when which of the following is applied?

A. Punishment
B. Positive reinforcement
C. Negative stimuli
D. Loss of reward

Answer: B

NEW QUESTION # 42
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