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| Section | Weight | Objectives |
|---|
| Topic 1: Fraud Prevention Programs | 15–20% | - Monitoring and continuous improvement - Designing prevention strategies - Communication and training
|
| Topic 2: Corporate Governance | 20–25% | - Roles of board, management, auditors - Governance frameworks and principles
- 1. OECD guidelines
- 2. Treadway Commission (COSO)
- Internal control systems
|
| Topic 3: Fraud Risk Assessment | 15–20% | - Risk identification methodologies - Assessment implementation and documentation - Risk analysis and prioritization
|
| Topic 4: Professional Ethics | 5–10% | - Ethical decision-making - ACFE Code of Professional Ethics - Conflicts of interest and integrity
|
| Topic 5: Understanding Criminal Behavior | 5–10% | - Theories of crime causation
- 1. Rational choice and routine activities theory
- 2. Differential association theory
- 3. Social control and social learning theory
- Behavior modification principles
|
| Topic 6: White-Collar Crime | 15–20% | - Impact on organizations and society - Causal factors and opportunity structures - Legal prosecution and sanctions - Organizational vs occupational crime - Definition and characteristics
|
| Topic 7: Management's Fraud-Related Responsibilities | 5–10% | - Reporting mechanisms - Oversight and accountability - Establishing anti-fraud policies
|
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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q267-Q272):
NEW QUESTION # 267
Which of the following is FALSE regarding a background check policy for employees?
- A. At a minimum, management should conduct a background check on any candidate who will have constant access to cash, checks, and credit card numbers, or other easily stolen items.
- B. Where permitted by law, management should run a background check on any existing employee who is being promoted to a position that includes access to sensitive or valuable company resources, even if a background check was run on the individual at the time of hire
- C. When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.
- D. As part of the screening process, management should contact the references provided by the job candidate.
Answer: C
Explanation:
Verifying employment history involves more than just confirming dates. It includes understanding job roles, responsibilities, and performance. Solely asking for employment dates does not provide sufficient information to assess fraud risk.
NEW QUESTION # 268
An organization conducts ethics training only during new-hire orientation and never again. Which statement is MOST accurate?
- A. One-time training is generally sufficient
- B. Ongoing ethics communication and reinforcement are more effective
- C. Training is unnecessary if a hotline exists
- D. Ethics training increases fraud risk
Answer: B
Explanation:
Ethical expectations should be reinforced continuously. Regular training, communication, and leadership involvement help employees recognize risks, understand reporting procedures, and maintain awareness of organizational values over time.
NEW QUESTION # 269
Which of the following statements is FALSE?
- A. Most experts agree that it is harder to detect frauds than to prevent them
- B. Controls are not effective in preventing theft and fraud If those at risk do not know of their presence
- C. Conducting covert audits is among the most effective fraud prevention methods
- D. Educating employees about company hotlines and reporting programs increases their perception of detection
Answer: C
Explanation:
Fraud Prevention Methods:
Prevention strategies often focus on education, awareness, and robust controls rather than covert methods. While covert audits can detect fraud, they are not primarily preventive.
Why D is False:
Covert audits are reactive and focused on identifying existing fraud, not preventing it.
NEW QUESTION # 270
Daniela, an independent Certified Fraud Examiner (CFE), was hired by Charles, executive director of a nonprofit organization, to investigate a straightforward embezzlement case.
Duringthe investigation, Daniela learns that Charles is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Daniela should:
- A. Not disclose the information about Charles.
- B. Resign from the engagement.
- C. Report Charles to law enforcement
- D. Tell the nonprofit's board of trustees about Charles
Answer: D
Explanation:
ACFE Code of Professional Ethics:
CFEs must act with integrity and report material fraud findings to the appropriate authority within the organization.
Why A is Correct:
Informing the board of trustees ensures that those responsible for governance can take appropriate action. Reporting to law enforcement (option B) may breach contractual obligations unless legally required.
NEW QUESTION # 271
Beezie, a Certified Fraud Examiner (CFE), took an introductory class in computer forensics.
When a client thought there might be evidence of a crime on their computer, Beezie decided to conduct a forensic examination of the computer even though she had no experience or advanced training in this area. Which of the following is TRUE regarding Beezie's conduct?
- A. Beezie's conduct would be a violation of the ACFE Code of Professional Ethics only if she did not find the fraudster.
- B. Beezie's conduct would be a violation of the ACFE Code of Professional Ethics.
- C. Beezie's conduct would be a violation of the ACFE Code of Professional Ethics only if she also violated the law.
- D. Beezie's conduct would not be a violation of the ACFE Code of Professional Ethics.
Answer: D
NEW QUESTION # 272
......
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