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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE CFE-Fraud-Prevention - Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Perfect Training Materials

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q19-Q24):

NEW QUESTION # 19
Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?

A. ISA 240 establishes standards regarding the auditor's responsibility to consider fraud in an audit of financial statements.
B. ISA 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization.
C. ISA 240 requires auditors to effectively raise awareness about the risk of fraud within the audited organization.
D. ISA 240 creates requirements for management regarding the establishment of a holistic fraud risk management program.

Answer: A

Explanation:
ISA 240 (The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements) outlines the auditor's responsibility to assess and respond to the risk of material misstatement due to fraud. It does not impose a primary responsibility for fraud prevention and detection upon auditors--that responsibility lies with management (eliminating C). The standard also does not require auditors to actively raise fraud awareness within the organization (eliminating A), nor does it establish requirements for fraud risk management programs for management (eliminating D).

NEW QUESTION # 20
Which of the following principles of corporate governance pertains to the duty of the organization to act in the best interest of society?

A. Responsibility
B. Fairness
C. Accountability
D. Transparency

Answer: A

Explanation:
Principle Overview:
Responsibility pertains to the duty of an organization to act in the best interest of society, ensuring sustainable and ethical practices that benefit all stakeholders, including employees, customers, and the environment.
Corporate Governance Definition:
Corporate governance frameworks emphasize corporate responsibility as a key pillar for maintaining societal trust and long-term value creation.
Why Responsibility is Correct:
While transparency, fairness, and accountability are essential, responsibility uniquely emphasizes societal interests and ethical conduct.

NEW QUESTION # 21
A professional organization's code of conduct serves which of the following purposes?

A. A code acts as a substitute for legal and regulatory requirements that apply to the profession.
B. A code provides answers to all ethical dilemmas that the organization's members might encounter.
C. A code offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.
D. A code facilitates practical enforcement and internal discipline throughout a profession.

Answer: D

Explanation:
The ACFE manual notes that codes of conduct not only serve as a reference for guiding behavior but also enable enforcement and internal discipline within a profession.
"A code of ethical conduct serves as a reference and benchmark for ethical guidance... [and] facilitates practical enforcement and internal discipline throughout a profession."

NEW QUESTION # 22
Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To most effectively reinforce an anti-fraud culture, management should:

A. Create an environment in which employees feel safe challenging management's decisions
B. All of the above
C. Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
D. implement two separate sets of ethics policies, one for management and one for employees

Answer: A

Explanation:
Safe environment for challenges: This is the most effective method as it promotes transparency, accountability, and whistleblowing.

NEW QUESTION # 23
During an external audit of an organization's financial statements. Elena, the external auditor, uncovers significant internal control deficiencies at the audit client's organization. She believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Elena do with regard to these findings?

A. Elena should report the findings in writing to the appropriate law enforcement agencies.
B. Elena should suspend the audit and begin a new audit focused on the internal controls
C. Elena should work independently to correct the underlying internal control deficiency.
D. Elena should provide a written communication about the findings to senior management.

Answer: D

Explanation:
Responsibilities of an External Auditor:
When significant internal control deficiencies are discovered, the auditor is required to report them to senior management and, where appropriate, the audit committee.
The purpose is to ensure that the organization is informed of the risks and can take corrective actions.

NEW QUESTION # 24
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