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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Fraud Prevention and Deterrence | 25% | - Monitoring, auditing, and continuous improvement - Fraud prevention programs and frameworks - Fraud deterrence strategies and controls - Internal control systems and evaluation - Fraud risk governance and organizational culture - Whistleblowing and reporting mechanisms - Anti-fraud policies and procedures - Ethics and corporate governance - Fraud risk assessment |
ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:
Willow, Inc. has a complex organizational structure with many specialized departments. The structure of Willow, Inc. increases the likelihood that fraud will go undetected within the organization.
- A. True
- B. False
Correct Answer: B 🗳️
Luis, the internal audit manager for Oak Corporation, is working to formally incorporate the company's fraud risk assessment into its audit process. Which of the following is NOT a way that Oak's audit team should use the fraud risk assessment process and results as part of their audits?
- A. To validate whether the organization is appropriately managing moderate-to-high fraud risks.
- B. To confirm whether there is conclusive evidence that fraud is occurring within the company.
- C. To design audit tests to evaluate whether fraud risk controls are operating effectively.
- D. To inform the development of audit programs for areas that have been identified as having a high risk of fraud.
Correct Answer: B 🗳️
According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:
- A. The increased constraints of the regulatory environment for businesses
- B. The increased opportunity for wrongdoing as a result of advancing information technologies
- C. The continued pressures of a culture that rewards affluence and success
- D. The economy's increased reliance on credit
Correct Answer: A 🗳️
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Which of the following statements regarding the objectives of a fraud risk management program is TRUE?
- A. A fraud risk management program should only focus on addressing fraud after it occurs.
- B. A fraud risk management program should prioritize activities that proactively identify and assess fraud risks over activities that detect fraud while it is occurring.
- C. A fraud risk management program should include the formal procedures that management takes in response to a fraud, such as rebuilding stakeholders' confidence in the organization.
- D. A fraud risk management program should incorporate policies and procedures designed to both prevent and detect fraud but should not address fraud responses.
Correct Answer: C 🗳️
Which of the following scenarios is the MOST ACCURATE representation of organizational crime?
- A. An accountant uses company funds to pay personal credit card charges.
- B. An agreement between all the local floral companies to unnecessarily raise prices.
- C. A retail clerk colluding with a friend to commit a scheme involving fraudulent returns.
- D. An inventory manager taking home the company's product to sell privately.
Correct Answer: B 🗳️
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