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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Fraud Prevention and Deterrence | 25% | - Fraud risk assessment - Monitoring, auditing, and continuous improvement - Whistleblowing and reporting mechanisms - Fraud prevention programs and frameworks - Ethics and corporate governance - Fraud risk governance and organizational culture - Anti-fraud policies and procedures - Internal control systems and evaluation - Fraud deterrence strategies and controls |
ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:
XYZ. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that XYZ is subject to?
- A. XYZ is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions
- B. XYZ must comply with the various laws and regulations in the countries in which it operates
- C. XYZ is required to comply with G20'OECD Principles of Corporate Governance.
- D. XYZ is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.
Correct Answer: B 🗳️
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Black, a Certified Fraud Examiner CFE, was hired to conduct a fraud examination. He did not find fraud, but in Black's opinion, the controls he examined were deficient. Under the ACFE Code of Professional Ethics, which of the following is TRUE?
- A. Black is not permitted to express his opinion on the internal control deficiencies in his report to management under any circumstances.
- B. Black may include his opinion on the internal control deficiencies in his report to management only if he amends his engagement letter.
- C. Black may include his opinion on the internal control deficiencies in his report to management only if he gets formal approval from the board of directors.
- D. Black may include his opinion on the internal control deficiencies in his report to management because it is a technical matter.
Correct Answer: D 🗳️
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Which of the following statements about the fraud risk assessment process Is MOST ACCURATE?
- A. To ensure the independence of the team members, a fraud risk assessment must be conducted by a consultant or other external party.
- B. The fraud risk assessment can be effectively conducted by people inside or outside of the organization.
- C. If the individuals conducting the fraud risk assessment truly believe that fraud could not happen at the organization, then the assessment process should reflect that belief.
- D. The fraud risk assessment is most effective when management's influence on the process is limited
Correct Answer: B 🗳️
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In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:
- A. The possibility of management's override of controls
- B. Risks to the organization's reputation
- C. All of the above
- D. The organization's incentive programs
Correct Answer: C 🗳️
Jody has been working at ABC Corp. for ten years. He steals funds from the company and tells himself that the company owes it to him for his "unrewarded hard work and loyalty" This situation BEST illustrates which leg of the Fraud Triangle?
- A. Rationalization
- B. Perceived non-shareable financial need
- C. Perceived opportunity
- D. Lack of personal Integrity
Correct Answer: A 🗳️
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