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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Fraud Prevention and Deterrence	25%	- Internal control systems and evaluation - Fraud risk governance and organizational culture - Anti-fraud policies and procedures - Fraud deterrence strategies and controls - Ethics and corporate governance - Monitoring, auditing, and continuous improvement - Fraud prevention programs and frameworks - Whistleblowing and reporting mechanisms - Fraud risk assessment

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q270-Q275):

NEW QUESTION # 270
Which of the following scenarios is LEAST LIKELY to be considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics?

A. Karen accepts an assignment to search for fraud indicators at an organization in which she is an undisclosed partner.
B. Lori accepts an assignment to infiltrate her employer and transmit inside information to a competitor.
C. DeVon undertakes engagements for both sides in a case of an alleged fraudulent warranty scheme.
D. Ren undertakes an external engagement that requires him to work outside the normal work hours of his primary employer.

Answer: D

NEW QUESTION # 271
Jacques, an internal auditor, and Brenna, the company's travel and expense manager, have had several disagreements about employee expense limits and policies. Jacques has just been told that he will lead the company's fraud risk assessment. During the fraud risk assessment, Jacques should:

A. Request that someone else perform the fraud risk assessment work related to employee travel and expenses.
B. Automatically designate the employee travel and expense function as a high-risk area.
C. Include his disagreements with Brenna as a factor when assessing the risk of fraud in the employee travel and expense function.
D. Confront Brenna about the disagreements and discuss how they increase the organization's risk of fraud.

Answer: A

Explanation:
The Fraud Risk Assessment chapter stresses that the people leading and conducting the assessment must be independent and objective. The manual specifically warns that personal experiences or biases can affect the evaluation of fraud risk in a business area. It gives an example that if someone on the team had a bad experience with a person in a department, that experience might improperly influence the assessment, and in that situation someone else should perform the work related to that department. This guidance directly applies here. Because Jacques has had repeated disagreements with Brenna, his objectivity regarding the travel and expense function could reasonably be questioned. To preserve the integrity and neutrality of the fraud risk assessment, he should request that someone else handle that area.

NEW QUESTION # 272
A manager intentionally overrides purchasing controls to expedite a legitimate emergency purchase. Which statement is MOST accurate?

A. Management override always constitutes fraud
B. Emergency situations eliminate control concerns
C. Override automatically strengthens controls
D. Management override can create risk even when the underlying purpose is legitimate

Answer: D

Explanation:
Management override is not necessarily fraudulent, but bypassing controls increases risk. Even legitimate exceptions should be documented, monitored, and approved to prevent abuse and preserve control effectiveness.

NEW QUESTION # 273
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?

A. Ignore the evidence because it involves senior management
B. Preserve the evidence and act in accordance with professional and legal obligations
C. Destroy the working papers after documenting the request
D. Follow instructions because management has authority over the investigation

Answer: B

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 # 274
Which of the following Is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance?

A. Governance and culture
B. Independent monitoring
C. Risk tolerance
D. Operating environment

Answer: A

Explanation:
Governance and culture set the foundation for an organization's risk management practices by establishing oversight, ethical values, and the operating structure.

NEW QUESTION # 275
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