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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q90-Q95):

NEW QUESTION # 90
Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?

Answer: A

Explanation:
Management should focus on tailoring objectives to the organization's needs, examining past fraud incidents, and balancing costs with benefits. Assigning a quantitative measure to risk appetite, while potentially useful, is not a requirement for effective fraud risk management.


NEW QUESTION # 91
Professional auditing standards require that auditors incorporate an "element of unpredictability" in the selection of auditing procedures to be performed.

Answer: A

Explanation:
Professional Auditing Standards Requirement:
Standards such as the International Standards on Auditing (ISA) and Generally Accepted Auditing Standards (GAAS) require auditors to include elements of unpredictability in their audit procedures to reduce the risk of fraud.
Purpose of Unpredictability:
By varying the scope, timing, and extent of audits, auditors prevent potential fraudsters from anticipating audit procedures and adjusting their behavior.
Why A is Correct:
This aligns with established auditing principles to enhance fraud detection and maintain audit integrity.


NEW QUESTION # 92
In the context of a fraud examination, integrity requires which of the following?

Answer: B


NEW QUESTION # 93
Alicia, a government auditor, is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions. Which of the following is TRUE regarding Alicia's consideration of fraud during this engagement?

Answer: D

Explanation:
Government auditors, like their private-sector counterparts, must adhere to International Standard on Auditing (ISA) 240, which provides guidance on the auditor's responsibilities related to fraud.
This standard applies to both private- and public-sector audits, emphasizing the importance of addressing risks of material misstatement due to fraud. Alicia must carefully evaluate fraud risks and incorporate relevant procedures, as mandated by ISA 240, ensuring a comprehensive audit approach.


NEW QUESTION # 94
Joanna is leading the fraud risk assessment process for her organization. Which of the following considerations about the fraud risk assessment process is MOST ACCURATE and should be incorporated into Joanna's plans?

Answer: B

Explanation:
Fraud risk assessments can be effectively conducted by internal personnel or external consultants. The key is that they must be conducted objectively and with due professional care.
There is no requirement that they be conducted only externally (eliminating A), nor should biases about the improbability of fraud influence the assessment scope (eliminating B). Management involvement can be helpful when balanced appropriately--it should not be unduly limited (eliminating D).


NEW QUESTION # 95
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