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ACFE CFE-Fraud-Prevention-and-Deterrence Exam is administered by the Association of Certified Fraud Examiners (ACFE), which is the world's largest anti-fraud organization. The ACFE is dedicated to fighting fraud and white-collar crime by providing education, training, and resources to professionals in the field. The ACFE CFE-Fraud-Prevention-and-Deterrence Exam is one of the most respected and recognized certifications in the field of fraud prevention and deterrence.
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To become a Certified Fraud Examiner-Fraud Prevention and Deterrence, candidates must meet the eligibility requirements set by the ACFE. Candidates must have a minimum of a bachelor's degree or equivalent, and have two years of professional experience in a field related to fraud prevention and detection. Candidates must also pass the CFE-Fraud-Prevention-and-Deterrence Certification Exam, which is a computer-based exam that is offered at Pearson VUE testing centers around the world.
ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q122-Q127):
NEW QUESTION # 122
Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?
- A. Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program's effectiveness.
- B. Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented tnem.
- C. Management must balance the investment in anti-fraud controls with the benefit of those controls and the amount of risk it is willing to accept.
- D. Management should tailor the detailed objectives of the fraud risk management program to the organization's specific needs and goals.
Answer: A
NEW QUESTION # 123
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. Fairness
- B. Transparency
- C. Responsibility
- D. Accountability
Answer: B
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.
* Analysis of Other Options:
* B. Fairness: Involves equitable treatment of all shareholders.
* C. Responsibility: Focuses on fulfilling legal and ethical obligations.
* D. Accountability: Pertains to holding the board and management responsible for their actions.
* Conclusion:Transparency ensures shareholders have the necessary information for decision-making.
References:Corporate governance best practices and G20/OECD Principles of Corporate Governance.
NEW QUESTION # 124
Which of the following Is TRUE regarding the reporting of the fraud risk assessment results?
- A. The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding
- B. A fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified
- C. All of the above
- D. The fraud risk assessment report should be delivered in a style most suited to the language of the business
Answer: D
Explanation:
* Reporting Fraud Risk Assessment Results:
* Reports should align with the organization's operational language to ensure comprehension by management and stakeholders.
* Why A is Correct:
* Using business-appropriate language ensures effective communication of findings and recommendations.
* Why Other Options are Incorrect:
* B: Comprehensive details may overwhelm the audience; only key findings are usually reported.
* C: Reports should reflect objective analysis, not subjective perspectives.
NEW QUESTION # 125
The internal auditor s fraud-related responsibilities include which of the following?
- A. Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program
- B. Reporting to regulators regarding the entity's vulnerability to fraud
- C. Overseeing managements actions to manage fraud risks
- D. Attesting that the organization s financial statements are free of material misstatements caused by fraud
Answer: B
NEW QUESTION # 126
In the context of a fraud examination, integrity requires which of the following elements?
- A. Independence of mental attitude and avoidance of conflicts of interest.
- B. Prioritization of desires for personal gain over the interests of clients.
- C. Ability to conceal errors to preserve the reliability of the work performed.
- D. Avoidance of differences of opinion on all material matters.
Answer: A
Explanation:
Integrity in fraud examination requires honesty, objectivity, independence of mental attitude, and avoidance of conflicts of interest that could impair professional judgment. A CFE must place the truth and the proper performance of the engagement above personal gain or outside influence. Option B is incorrect because prioritizing personal gain directly conflicts with integrity. Option C is also wrong because concealing errors undermines reliability, transparency, and professional responsibility. Option D is incorrect because differences of opinion can occur in professional work; integrity does not require artificial agreement. Instead, it requires that opinions and conclusions be based on sufficient evidence and disclosed honestly. A fraud examiner must remain independent in thought and avoid relationships or interests that compromise objectivity. Therefore, option A best describes integrity in a fraud examination.
NEW QUESTION # 127
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