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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Fraud Risk Management and Deterrence	25%	- Fraud prevention strategies and programs - Monitoring and continuous improvement
Corporate Governance and Ethics	25%	- Ethical culture and tone at the top - Code of conduct and compliance programs
Internal Controls and Fraud Prevention	25%	- Internal control design and effectiveness - Fraud detection and prevention controls
Fraud Prevention Framework	25%	- Fraud risk governance and oversight - Fraud risk assessment processes

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q70-Q75):

NEW QUESTION # 70
Terrel, a Certified Fraud Examiner (CFE), unknowingly violates the law one night. Which of the following statements about the ACFE Code of Professional Ethics is TRUE?

A. This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel is arrested.
B. This conduct would be a violation of the ACFE Code of Professional Ethics.
C. This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel knew the conduct was illegal.
D. This conduct would not be a violation of the ACFE Code of Professional Ethics under any circumstances.

Answer: B

NEW QUESTION # 71
An organization wants to identify unusual transactions automatically across millions of records.
Which approach is MOST effective?

A. Annual employee surveys
B. Manual review of every transaction
C. Random interviews only
D. Data analytics and continuous monitoring

Answer: D

Explanation:
Data analytics can identify anomalies, trends, duplicate payments, unusual vendor activity, and suspicious patterns efficiently. Continuous monitoring allows organizations to detect potential fraud earlier and respond before losses become significant.

NEW QUESTION # 72
Management at ABC Company wants to transfer one of the risks identified during the company's fraud risk assessment process. Which of the following actions would be MOST APPROPRIATE to support this response?

A. Implementing additional preventive and detective controls
B. Purchasing fidelity insurance to protect against the associated risk of loss
C. Discontinuing the underlying activity completely
D. Deciding not to implement any responsive measures

Answer: B

NEW QUESTION # 73
Patrick is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking his audit procedures, he discovers evidence that senior management has been fraudulently manipulating the financial statements.
Which of the following is Patrick's BEST response to these findings?

A. Patrick should immediately report his findings to local law enforcement authorities.
B. Patrick should not disclose his findings to any other parties due to client confidentiality
C. Patrick should report his findings to those charged with governance of the organization.
D. Patrick should confront management with his audit findings and try to get a confession.

Answer: C

Explanation:
International Standards on Auditing (ISAs) Requirements:
ISAs require auditors to communicate suspected or confirmed fraud to "those charged with governance" of the organization, as they have the responsibility for oversight.
ISA 240, "The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements," mandates that findings be reported to appropriate governance bodies before considering further actions.
Confidentiality and Legal Obligations:
Auditors must maintain confidentiality unless legal or regulatory frameworks require disclosure to authorities. Immediate reporting to law enforcement (option B) may breach confidentiality without proper internal escalation.
Reporting to governance ensures proper internal actions are taken and protects the integrity of the audit process. It allows the organization to address the issue before external involvement if required.

NEW QUESTION # 74
Ian is drafting a report containing the results of his company's fraud risk assessment process. To be MOST EFFECTIVE, Ian's report should:

A. Focus on the findings that will make the most impact on the company's fraud risk management efforts.
B. Reflect the assessment team's subjective perspective regarding the risks identified.
C. Contain a detailed, comprehensive list of every assessment finding.
D. Include a complete list of recommended actions for management to take to address all identified risks.

Answer: A

NEW QUESTION # 75
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