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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Fraud Prevention and Deterrence25%- Internal control systems and evaluation
- Fraud risk assessment
- Fraud risk governance and organizational culture
- Monitoring, auditing, and continuous improvement
- Fraud deterrence strategies and controls
- Anti-fraud policies and procedures
- Fraud prevention programs and frameworks
- Ethics and corporate governance
- Whistleblowing and reporting mechanisms

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q264-Q269):

NEW QUESTION # 264
Which of the following is one of the four recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

Answer: A

Explanation:
The Treadway Commission emphasizes improving internal controls, which include strengthening the internal audit function. Providing adequate resources and authority to the internal audit function ensures that it operates independently and effectively, which is critical for preventing and detecting fraud. The internal audit function can evaluate financial reporting systems, detect irregularities, and provide valuable recommendations for improvement. This recommendation aligns with the goal of reducing fraud and ensuring reliable financial reporting.


NEW QUESTION # 265
In the area of criminological theory, deterrence is the theory that tries to prevenl crime by using the threat of criminal sanctions.

Answer: A

Explanation:
This theory posits that crime can be prevented by making the potential consequences severe enough to deter individuals from offending. It emphasizes the certainty, severity, and swiftness of punishment.
Why A is Correct:
The threat of criminal sanctions is a cornerstone of deterrence theory, designed to reduce crime by increasing the perceived risks and consequences.


NEW QUESTION # 266
Julia, an internal auditor, is formalizing a process to evaluate the effectiveness of the company's control system over time, including both ongoing evaluations and periodic separate evaluations.
Julia's initiative BEST pertains to which component of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control--Integrated Framework?

Answer: A

Explanation:
The COSO framework outlines monitoring as one of its five core components, which involves evaluating the effectiveness of internal controls over time. Monitoring includes both ongoing evaluations and separate evaluations, which is exactly what Julia is initiating. This distinguishes monitoring (correct) from control activities (which pertain to execution of policies), risk assessment (which identifies and analyzes risks), and control environment (which is the tone at the top).


NEW QUESTION # 267
Gregory, an internal auditor, and Brandon, the company's purchasing manager, have had several heated disagreements over purchasing procedures and policies. Gregory has just been told that he will be the lead on the company's fraud risk assessment. During the fraud risk assessment.
Gregory should:

Answer: B

Explanation:
Fraud Risk Assessment Objectivity:
The assessment must remain unbiased, but any prior disagreements or conflicts may highlight areas where policies or procedures are unclear, increasing fraud risks.
Why C is Correct:
Incorporating disagreements provides context to evaluate risks objectively, ensuring that all relevant factors are considered without bias.


NEW QUESTION # 268
An effective system of anti-fraud controls

Answer: A

Explanation:
Purpose of Anti-Fraud Controls:
Preventive controls deter fraud before it occurs, making them the primary focus of an effective anti- fraud program.
Detective controls identify fraud after it has occurred, serving as a secondary line of defense.


NEW QUESTION # 269
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