Latest ACFE CFE-Fraud-Prevention Exam Questions in Three Formats

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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

SectionWeightObjectives
Internal Controls and Fraud Prevention25%- Internal control design and effectiveness
- Fraud detection and prevention controls
Fraud Risk Management and Deterrence25%- Monitoring and continuous improvement
- Fraud prevention strategies and programs
Corporate Governance and Ethics25%- Ethical culture and tone at the top
- Code of conduct and compliance programs
Fraud Prevention Framework25%- Fraud risk governance and oversight
- Fraud risk assessment processes

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q104-Q109):

NEW QUESTION # 104
Which of the following Is NOT Included In Ihe five fraud risk management principles described In Fraud Risk Management Guide, a joint publication by COSO and the ACFE?

Answer: C

Explanation:
Fraud risk management requires ongoing evaluations, not one-time assessments, to adapt to evolving risks.


NEW QUESTION # 105
Employees should be kept unaware that management is watching for lifestyle and behavior changes In staff members that might indicate fraud.

Answer: A

Explanation:
Management's Role in Fraud Monitoring:
Employees should be aware that management monitors lifestyle and behavior changes.
Transparency discourages fraudulent behavior by reinforcing accountability.
Effect of Transparency:
Awareness of monitoring helps maintain a culture of ethical behavior and reduces the likelihood of fraud.
Conclusion: The statement is false because employees should know that management is vigilant about potential fraud indicators.


NEW QUESTION # 106
Devon, an employee at Tilly Corp., repeatedly demonstrates a negative attitude when working with other departments. To address this behavior, Devon's manager tells him that he is no longer allowed to lead cross-departmental projects. This is an example of what type of behavioral response?

Answer: B

Explanation:
This scenario is an example of punishment. Punishment involves introducing a consequence (in this case, the loss of responsibility for cross-departmental projects) to discourage undesirable behavior. The manager uses this approach to address Devon's negative attitude and to promote better cooperation with other departments in the future.


NEW QUESTION # 107
Which of the following is a TRUE statement regarding the components of the Committee of Sponsoring Organizations of the Treadway Commission's COSO Internal Control--Integrated Framework the Framework?

Answer: D

Explanation:
The manual explains that COSO's Internal Control--Integrated Framework contains five components of internal control: control environment, risk assessment, control activities, information and communication, and monitoring. It then states that the effectiveness of internal controls can be determined by assessing whether each of the five components is in place and functioning effectively and whether the five components are operating together in an integrated manner. That language directly supports option B. Ethical culture is important, but it is not listed as one of the five primary COSO components. Likewise, the framework does not define effectiveness simply by reference to minimum regulatory requirements, and it does not identify 12 components. Accordingly, option B is the accurate statement under the manual.


NEW QUESTION # 108
A fraud examiner discovers evidence suggesting possible misconduct by a senior executive. The examiner's supervisor instructs him to stop investigating and destroy his working papers. What should the examiner do?

Answer: D

Explanation:
Professional standards require fraud examiners to maintain integrity and exercise due professional care. Destroying evidence could compromise the investigation and potentially violate legal obligations. Evidence should be preserved and handled according to applicable policies and laws.


NEW QUESTION # 109
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