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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q196-Q201):

NEW QUESTION # 196
A professional organization's code of conduct serves which of the following purposes?

A. A code offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.
B. A code provides answers to all ethical dilemmas that the organization's members might encounter.
C. A code facilitates practical enforcement and internal discipline throughout a profession.
D. A code acts as a substitute for legal and regulatory requirements that apply to the profession.

Answer: C

Explanation:
The ACFE manual notes that codes of conduct not only serve as a reference for guiding behavior but also enable enforcement and internal discipline within a profession.
"A code of ethical conduct serves as a reference and benchmark for ethical guidance... [and] facilitates practical enforcement and internal discipline throughout a profession."

NEW QUESTION # 197
Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but It allows exceptions for unknowing violations of the law.

A. True
B. False

Answer: B

Explanation:
ACFE Code of Professional Ethics:
Article II prohibits all illegal and unethical conduct, with no exceptions for unknowing violations of the law. CFEs are expected to maintain a high standard of professional integrity and responsibility.
Why B is Correct:
Ignorance of the law is not an acceptable defense under the ACFE Code of Ethics. Professionals must ensure they understand and comply with applicable laws.

NEW QUESTION # 198
According to the differential reinforcement theory, behavior is strengthened when which of the following is applied?

A. Punishment
B. Negative stimuli
C. Positive reinforcement
D. Loss of reward

Answer: C

NEW QUESTION # 199
Formally documenting and communicating organizational hierarchies, including the proper flow of information, can hinder an organization's fraud prevention initiatives.

A. True
B. False

Answer: B

Explanation:
Effect of Documenting Organizational Hierarchies:
Properly documenting hierarchies improves fraud prevention by clarifying responsibilities, ensuring accountability, and establishing clear information flow.
This reduces ambiguity and limits opportunities for fraud.
Why the Statement is False:
Documenting and communicating hierarchies strengthens fraud prevention, rather than hindering it.
Conclusion: The statement is false because clear hierarchies enhance fraud prevention initiatives.

NEW QUESTION # 200
During a fraud risk assessment, a manager argues that fraud risks should only be evaluated based on historical fraud incidents. What is the BEST response?

A. Agree because past fraud is the strongest predictor of future fraud
B. Exclude hypothetical fraud scenarios
C. Evaluate both existing and potential fraud risks, including risks not previously observed
D. Focus exclusively on areas with prior losses

Answer: C

Explanation:
Fraud risk assessments should consider both known and emerging risks. The absence of prior incidents does not indicate the absence of vulnerability. Organizations must evaluate potential schemes, changing business processes, and new threats that may not yet have occurred.

NEW QUESTION # 201
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