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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q94-Q99):

NEW QUESTION # 94
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.

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.


NEW QUESTION # 95
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: C

Explanation:
The Corporate Governance chapter explains that the Treadway Commission made four recommendations aimed at reducing the likelihood of fraud in financial reporting. These recommendations were directed to the board of directors' audit committee and included having an independent audit committee, a written charter for the audit committee, adequate resources and authority, and informed, vigilant, and effective audit committee members. The manual specifically states that the existence of an audit committee and a written charter is not enough; the committee must also have adequate resources and authority to carry out its responsibilities. That language directly matches option C. The other choices either substitute the wrong committee, assign the charter to management instead of the audit committee, or improperly shift oversight of internal controls to shareholders.


NEW QUESTION # 96
The internal auditor's fraud-related responsibilities include which of the following?

Answer: B


NEW QUESTION # 97
Which of the following is among the board of directors' primary responsibilities related to fraud risk management?

Answer: D

Explanation:
Board Responsibilities in Fraud Risk Management:
The board plays a critical role in overseeing the organization's fraud risk management activities to ensure accountability and effective governance.
Why A is Correct:
The board provides high-level oversight but does not typically involve itself in the design or implementation of the fraud risk management program.


NEW QUESTION # 98
Which of the following is BEST classified as a type of external fraud risk?

Answer: C

Explanation:
Collusion between contractors is an example of external fraud risk because it involves external parties conspiring to defraud the organization. The other options describe internal fraud risks, such as actions committed by employees within the organization.


NEW QUESTION # 99
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