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| Section | Weight | Objectives |
|---|
| Fraud Prevention and Deterrence | 25% | - Fraud risk assessment - Monitoring, auditing, and continuous improvement - Ethics and corporate governance - Internal control systems and evaluation - Whistleblowing and reporting mechanisms - Fraud deterrence strategies and controls - Anti-fraud policies and procedures - Fraud prevention programs and frameworks - Fraud risk governance and organizational culture
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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q182-Q187):
NEW QUESTION # 182
Which of the following components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance refers to an organization's ability to continually assess how well its enterprise risk management (ERM) capabilities and practices have increased value over time and how they will continue to drive value for the organization?
- A. Review and revision
- B. Governance and culture
- C. Risk tolerance
- D. Strategy and objective-setting
Answer: A
Explanation:
The "Review and Revision" component is focused on evaluating how ERM practices contribute to organizational value and adapting them accordingly.
"As part of its ERM activities, the organization should review how well the ERM capabilities and practices have increased value over time and how they will continue to drive value."
NEW QUESTION # 183
Which of the following is TRUE regarding prosecutions of white-collar criminals?
- A. Most fraud cases are only handled internally and are not referred to law enforcement for prosecution
- B. The primary reason organizations decline to prosecute fraud cases is a belief that their internal discipline methods are sufficient
- C. Only a small percentage of perpetrators are punished when an organization deals with a fraud case internally.
- D. When fraud cases are handled internally, an employee is more likely to be suspended or put on probation than to be terminated for their crime.
Answer: A
Explanation:
Statistics on Fraud Prosecution:
Research indicates that many organizations prefer to handle fraud cases internally rather than involving law enforcement due to concerns over reputation, cost, and time.
Why B is Correct:
Organizations often resolve fraud cases through internal disciplinary actions, such as termination or restitution, rather than pursuing criminal prosecution.
NEW QUESTION # 184
Which principle of corporate governance pertains to the disclosure of all material matters that the shareholders need to make timely and informed decisions regarding their investment in the company?
- A. Accountability
- B. Responsibility
- C. Fairness
- D. Transparency
Answer: D
Explanation:
Corporate Governance Principles:
Transparency refers to disclosing material matters, enabling shareholders to make informed decisions.
This includes providing timely and accurate information about the company's financial performance, risks, and governance practices.
NEW QUESTION # 185
Willow, Inc. has a complex organizational structure with many specialized departments. The structure of Willow, Inc. increases the likelihood that fraud will go undetected within the organization.
Answer: B
NEW QUESTION # 186
Timothy, a new Certified Fraud Examiner (CFE), has been tasked with his first fraud examination engagement. To exercise appropriate professional skepticism as he conducts the engagement, Timothy should:
- A. Form the engagement hypothesis without consideration for the nature of the assignment.
- B. Maintain a skeptical attitude throughout the entire engagement even if the evidence shows no signs of fraudulent activity.
- C. Begin the engagement with the belief that no fraud has occurred.
- D. Maintain professional skepticism that can only be dispelled by evidence.
Answer: B
NEW QUESTION # 187
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