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ACFE CFE-Fraud-Prevention-and-Deterrence Valid Exam Duration | Exam Dumps CFE-Fraud-Prevention-and-Deterrence Zip

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The Certified Fraud Examiner - Fraud Prevention and Deterrence (CFE-Fraud-Prevention-and-Deterrence) exam is a prestigious certification that prepares individuals to uncover fraudulent activities and investigate financial crimes. CFE-Fraud-Prevention-and-Deterrence exam is designed by the Association of Certified Fraud Examiners (ACFE), which is a global organization that aims to reduce fraud and white-collar crimes. The CFE-Fraud-Prevention-and-Deterrence Certification is highly valued in the financial industry, especially for professionals who are into fraud investigation and prevention.

ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q16-Q21):

NEW QUESTION # 16
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 reconsider the reliability of the audit evidence they have previously obtained.
• B. The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.
• C. The auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold
• D. The auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.

Answer: A

Explanation:
* Implications of Management Manipulation:
* Intentional manipulation, even if quantitatively immaterial, raises concerns about the reliability of management representations and the integrity of audit evidence.
* Why Option A is Correct:
* Reassessing the reliability of previously obtained evidence ensures that the auditors address potential biases or systemic issues arising from management's actions.
* Analysis of Other Options:
* B. Withdrawing from the audit: Premature unless the issue is pervasive.
* C. Legal definition of fraud: Auditors are not required to meet this threshold for assessing evidence.
* D. Quantitative materiality: Misstatements can be qualitatively material if they indicate intentional manipulation.
* Conclusion:The auditors must reconsider the reliability of evidence due to the qualitative implications of management's actions.
References:Auditing standards and ACFE guidance on assessing audit evidence reliability.

 

NEW QUESTION # 17
Which of the following factors increases an organization's inherent inclination toward committing crime according to Diane Vaughan's research?

• A. Management separates employee performance goals from company performance goals.
• B. Management encourages employee loyalty through social functions.
• C. Management seeks diversity in attitudes and perspectives when hiring employees.
• D. Management rewards employees who challenge how the company functions.

Answer: A

 

NEW QUESTION # 18
Eliece, a Certified Fraud Examiner (CFE), and Jewel are employees at Silver Inc. Jewel informs Eliece that she has knowledge of a potential financial statement fraud but does not feel comfortable sharing this information unless Eliece can promise that she will keep it confidential. How should Eliece respond?

• A. Eliece should immediately contact management at Silver Inc. to provide information about her conversation with Jewel and her request for confidentiality.
• B. Eliece should tell Jewel that she will try to keep the information as confidential as possible but she might have an ethical obligation to inform their employer.
• C. Eliece should encourage Jewel to report the information to law enforcement because she cannot agree to Jewel's request.
• D. Eliece should promise Jewel that she will keep the information confidential even though she knows that she will likely be unable to keep that promise.

Answer: B

Explanation:
CFEs must act ethically and responsibly when handling sensitive information. Eliece should inform Jewel that she will try to maintain confidentiality but must adhere to professional and ethical obligations, which may require disclosing the information to appropriate parties such as her employer or relevant authorities. This balanced response encourages transparency while maintaining ethical standards.

 

NEW QUESTION # 19
Employee anti-fraud education should:

• A. Be restricted to formal educational mechanisms to reinforce the importance of the message.
• B. Be presented by organizational executives or anti-fraud professionals only.
• C. Include descriptions of the procedures that management uses to detect fraud.
• D. Include examples of prior employee misconduct and how those situations were handled.

Answer: D

Explanation:
Purpose of Anti-Fraud Education:
Education is most effective when employees understand the real consequences of fraud. Providing examples of prior incidents reinforces the importance of compliance.
Analysis of Other Options:
A: Include detection procedures:While this can increase awareness, it risks exposing sensitive controls.
C: Restricting to formal mechanisms:Education should be flexible and incorporate informal, ongoing messaging.
D: Executives and professionals only:While they play an essential role, education should engage employees at all levels.
Conclusion:Including examples of prior misconduct effectively conveys the seriousness of fraud prevention.
References:ACFE best practices for fraud education programs.

 

NEW QUESTION # 20
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. Black is not permitted to express his opinion on the deficient controls.

• A. False
• B. True

Answer: A

 

NEW QUESTION # 21
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