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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Fraud Prevention and Deterrence | 25% | - Internal control systems and evaluation - Anti-fraud policies and procedures - Fraud risk assessment - Fraud risk governance and organizational culture - Fraud deterrence strategies and controls - Fraud prevention programs and frameworks - Monitoring, auditing, and continuous improvement - Ethics and corporate governance - Whistleblowing and reporting mechanisms |
ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:
A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?
- A. The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.
- B. In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.
- C. The objectives of the audit are likely narrower than those of a private-sector financial statement audit.
- D. The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement
Correct Answer: B 🗳️
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Which of the following is one of the four recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?
- A. Have a mandatory independent finance committee
- B. Develop a written charter for the audit committee
- C. Provide adequate resources and authority to the internal audit function
- D. Assign oversight of the hotline reporting program to company shareholders
Correct Answer: C 🗳️
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Risk management is focused on balancing the organization's___________with Its____________.
- A. Regulatory requirements, risk appetite
- B. Objectives; resources
- C. Risk appetite, ability to meet its objectives
- D. Internal controls; financial reporting model
Correct Answer: C 🗳️
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In the area of criminological theory, deterrence is the theory that tries to prevenl crime by using the threat of criminal sanctions.
- A. False
- B. True
Correct Answer: B 🗳️
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Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?
- A. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks
- B. Including ethics-based metrics as a component of performance evaluations
- C. Establishing loosely defined job descriptions that allow employees flexibility in their roles
- D. Tying employee compensation to reasonable organizational performance goals
Correct Answer: A 🗳️
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