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ACFE CFE-Fraud-Prevention-and-Deterrence Exam Syllabus Topics:

SectionObjectives
Topic 1: Fraud Prevention and Deterrence- Corporate Governance
  • 1. Internal controls
  • 2. Board oversight
  • 3. Roles and responsibilities
- Management's Role
  • 1. Building anti-fraud programs
  • 2. Fraud risk assessment
- Auditors' Role
  • 1. Fraud detection responsibilities
- Ethics
  • 1. Ethical considerations in fraud examination

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q136-Q141):

NEW QUESTION # 136
During an external audit of an organization's financial statements, Saskia, the external auditor, uncovers significant internal control deficiencies at the organization. She believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Saskia do regarding these findings?

Answer: D

Explanation:
Comprehensive and Detailed in Depth Explanation:
ISA 265 requires that significant deficiencies in internal control identified during an audit be communicated in writing to those charged with governance. The auditor is not obligated to inform regulatory agencies unless required by law (eliminating A). Internal control audits are not separate engagements under standard financial statement audits (eliminating B). Withdrawal from the engagement is a last resort and only appropriate under severe circumstances beyond internal control issues (eliminating D).


NEW QUESTION # 137
Who is ultimately responsible lor ensuring the effectiveness of the organization's anti-fraud program?

Answer: C

Explanation:
* Responsibility for Anti-Fraud Program Effectiveness:
* Management holds ultimate responsibility for designing, implementing, and maintaining an effective anti-fraud program.
* Internal and external auditors, as well as compliance functions, provide oversight and recommendations but are not directly responsible for the program's effectiveness.
* Conclusion:Management is ultimately accountable for ensuring the success of the anti-fraud program.


NEW QUESTION # 138
Which of the following theories suggests that, when considering the possibility of violating a law. people are likely to ask themselves. "What would my family and friends think if they find out?

Answer: A


NEW QUESTION # 139
Jane, a Certified Fraud Examiner (CFE), was hired lo conduct a fraud examination at XYZ Company Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring Consequently. XYZ's management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management's request.

Answer: B


NEW QUESTION # 140
The internal auditor s fraud-related responsibilities include which of the following?

Answer: B


NEW QUESTION # 141
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