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| Section | Objectives |
|---|
| Topic 1: Fraud Prevention and Deterrence | - Auditors' Role
- 1. Fraud detection responsibilities
- Management's Role
- 1. Building anti-fraud programs
- 2. Fraud risk assessment
- Corporate Governance
- 1. Board oversight
- 2. Internal controls
- 3. Roles and responsibilities
- Ethics
- 1. Ethical considerations in fraud examination
|
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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q252-Q257):
NEW QUESTION # 252
In developing a corporate governance framework for an organization, directors and management must consider which of the following?
- A. All of the above
- B. The organization s legal and regulatory environment
- C. The organization s cultural environment
- D. The organization s ethical environment
Answer: A
NEW QUESTION # 253
According to the 2020 Report to the Nations.___________schemes ate the MOST COMMON form of occupational fraud, while_________schemes are the MOST COSTLY form of occupational fraud.
- A. Asset misappropriation; corruption
- B. Corruption, asset misappropriation
- C. Financial statement fraud: corruption
- D. Asset misappropriation: financial statement fraud
Answer: D
Explanation:
* Findings from the 2020 Report to the Nations:
* Asset misappropriation: Most common form of occupational fraud (e.g., theft of cash or inventory). It is frequent but less costly.
* Financial statement fraud: Most costly, involving significant manipulation of financial data.
* Analysis of Options:
* A. Asset misappropriation; corruption: Corruption is less costly than financial statement fraud.
* B. Corruption, asset misappropriation: Incorrect order and does not match the costliest scheme.
* C. Financial statement fraud; corruption: Incorrect pairing.
* Conclusion:Asset misappropriation is most common, and financial statement fraud is most costly.
References:2020 ACFE Report to the Nations on Occupational Fraud and Abuse.
NEW QUESTION # 254
The availability of suitable targets, absence of capable guardians, and presence of motivated offenders are the three most important elements that influence crime according to which of the following criminological theories?
- A. Social control theory
- B. Rational choice theory
- C. Conditioning theory
- D. Routine activities theory
Answer: D
Explanation:
* Elements of Routine Activities Theory:
* This theory posits that crime occurs when three elements converge:
* Availability of suitable targets.
* Absence of capable guardians.
* Presence of motivated offenders.
* Analysis of Other Options:
* A. Conditioning theory: Focuses on learned behaviors through reinforcement.
* C. Rational choice theory: Examines decision-making processes of offenders.
* D. Social control theory: Relates to societal bonds preventing deviant behavior.
* Conclusion:Routine activities theory best explains the convergence of these elements leading to crime.
NEW QUESTION # 255
Blue, a Certified Fraud Examiner (CFE). had an ethical dilemma regarding the contract governing one of his professional engagements. Which of the following sources of guidance would be considered the lowest level of reference to help Blue in determining the most ethical course of action?
- A. Contract law
- B. The handling of similar situations by individuals he respects
- C. Moral philosophical principles
- D. The ACFE Code of Professional Ethics
Answer: B
NEW QUESTION # 256
In the area of criminological theory, deterrence is the theory that tries to prevenl crime by using the threat of criminal sanctions.
Answer: A
NEW QUESTION # 257
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