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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Fraud Prevention and Deterrence | 25% | - Anti-fraud policies and procedures - Fraud deterrence strategies and controls - Ethics and corporate governance - Whistleblowing and reporting mechanisms - Internal control systems and evaluation - Fraud risk governance and organizational culture - Fraud risk assessment - Monitoring, auditing, and continuous improvement - Fraud prevention programs and frameworks |
ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:
Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?
- A. Fraud examiners should not relax their skeptical attitudes under any circumstances.
- B. Fraud examiners should form the engagement hypothesis without regard to the available preliminary information.
- C. Professional skepticism involves maintaining a mindset that no fraud has occurred
- D. Professional skepticism means beginning all assignments with the belief that something is amiss.
Correct Answer: A 🗳️
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For its compliance program to be effective, an organization must promote the program through appropriate incentives for compliance.
- A. True
- B. False
Correct Answer: A 🗳️
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During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization's reported revenue amount However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?
- A. The auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold
- B. The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.
- C. The auditors should reconsider the reliability of the audit evidence they have previously obtained.
- D. The auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.
Correct Answer: C 🗳️
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Harry is an internal auditor with ABC Company. Harry's supervisor, the chief audit executive (CAE), is the fraud risk assessment sponsor and has tasked Harry with drafting an email communication regarding ABC's upcoming fraud risk assessment process. Which of the following is a best practice that Harry should implement?
- A. Harry should keep the communication private and only share it with executive management.
- B. Harry's communication should encourage employees to participate in the assessment process.
- C. Harry should find a generic template to use as the primary communication to the entire staff.
- D. Harry's communication should be sent to the entire staff from his own email address.
Correct Answer: B 🗳️
A company discovers that several employees share login credentials to approve transactions.
What is the PRIMARY fraud risk?
- A. Stronger segregation of duties
- B. Reduced audit costs
- C. Loss of accountability and inability to determine responsibility
- D. Improved operational efficiency
Correct Answer: C 🗳️
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