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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

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

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q48-Q53):

NEW QUESTION # 48
Which of the following is FALSE regarding a fraud risk assessment?

A. The objective of the assessment is to help the organization identify what makes it most vulnerable to fraud.
B. The designation of an area as high risk should only occur if the assessment has conclusively revealed that fraud is occurring there.
C. The assessment should be used to improve employee fraud awareness
D. The assessment team should consider how employees behave as part of its assessment

Answer: B

Explanation:
Purpose of Fraud Risk Assessment:
The goal is to identify vulnerabilities to fraud and implement preventive measures, not to wait for conclusive evidence of fraud before designating high-risk areas.
Proactive Identification:
High-risk areas are identified based on susceptibility to fraud (e.g., lack of controls, high cash transactions), even if no fraud has been detected. This approach allows organizations to act preemptively.
Improving Fraud Awareness:
Employee education and behavior monitoring are integral components of the assessment process to reduce fraud risks.
Incorrect Assumption in D:
Waiting for conclusive evidence contradicts the proactive nature of fraud risk assessment and undermines its preventative function.

NEW QUESTION # 49
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 knew the conduct was illegal.
B. This conduct would not be a violation of the ACFE Code of Professional Ethics under any circumstances.
C. This conduct would be a violation of the ACFE Code of Professional Ethics only if Terrel is arrested.
D. This conduct would be a violation of the ACFE Code of Professional Ethics.

Answer: D

NEW QUESTION # 50
Helene has been working at WPX Corp. for nine years. She takes some of the company's products from the warehouse and sells them online. Helene tells herself that the company owes it to her for her "years of underpaid service." This situation BEST illustrates which component of the Fraud Triangle?

A. Perceived non-shareable financial need
B. Perceived opportunity
C. Rationalization
D. Integrity lapse

Answer: C

NEW QUESTION # 51
Maria, a Certified Fraud Examiner (CFE), is conducting a fraud risk assessment for a company where her brother serves as the Chief Financial Officer. Maria believes she can remain impartial.
What should she do?

A. Continue the assessment because no actual fraud has been identified
B. Disclose the relationship and remove herself from the engagement if independence could reasonably be questioned
C. Continue the assessment but avoid reviewing financial controls
D. Continue the assessment if the board verbally approves

Answer: B

Explanation:
The ACFE emphasizes both actual objectivity and the appearance of objectivity. Even if Maria believes she can remain unbiased, a reasonable third party could question her independence due to the close family relationship. Proper disclosure and reassignment help preserve confidence in the integrity of the engagement.

NEW QUESTION # 52
Armando has been tasked with developing policies to help prevent crime by using the threat of criminal sanctions to control the immediate behavior of individuals. Which of the following strategies to control crime is Armando using?

A. Compliance
B. Deterrence
C. Prevention
D. Enforcement

Answer: B

NEW QUESTION # 53
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