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The Certified Fraud Examiner (CFE) certification is highly sought after in the field of fraud examination and prevention. The CFE designation is recognized globally and is considered a hallmark of excellence in the anti-fraud profession. One of the CFE exam options is the Fraud Prevention and Deterrence exam, also known as the CFE-Fraud-Prevention-and-Deterrence Exam.
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The CFE-Fraud-Prevention-and-Deterrence Exam covers a wide range of topics, including fraud prevention and deterrence, fraud investigation, legal elements of fraud, and ethics. Professionals who pass CFE-Fraud-Prevention-and-Deterrence exam are equipped with the necessary skills to identify and prevent fraud within their organizations. They are also able to conduct fraud investigations and present evidence in court if necessary.
ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q179-Q184):
NEW QUESTION # 179
Risk management is focused on balancing the organization's___________with Its____________.
- A. Regulatory requirements, risk appetite
- B. Internal controls; financial reporting model
- C. Risk appetite, ability to meet its objectives
- D. Objectives; resources
Answer: C
Explanation:
* Focus of Risk Management:
* Risk management seeks to balance the organization's risk appetite (the level of risk it is willing to accept) with its ability to achieve objectives.
* Why D is Correct:
* Effective risk management aligns the organization's risk tolerance with its strategic and operational goals to ensure sustainability and success.
* Why Other Options are Incorrect:
* A, B, and C: While internal controls, regulatory requirements, and resources are critical, the primary balance is between risk appetite and objectives.
References for All Questions:
* ACFE Fraud Examination Guide and Risk Management Best Practices.
* COSO frameworks for internal controls and fraud risk management.
* Industry guidance on effective deterrence and governance practices.
NEW QUESTION # 180
According to Diane Vaughan. which of the following factors increases an organization's inherent inclination toward committing crime?
- A. All of the above
- B. Rewards are given to employees who challenge the status quo
- C. Management separates employee performance goals from company performance goals
- D. Management encourages employee loyalty through social functions
Answer: C
Explanation:
Diane Vaughan's Theory on Organizational Crime:
* Vaughan argued that organizational environments prone to crime exhibit a "normalization of deviance," often influenced by management decisions that misalign employee incentives with organizational objectives.
Why C is Correct:
* Misaligned goals create conflicting priorities, increasing the likelihood of unethical behavior to meet individual or team objectives.
Why Other Options are Incorrect:
* A: Challenging the status quo promotes innovation and ethical accountability.
* B: Social functions fostering loyalty do not inherently encourage crime.
NEW QUESTION # 181
In Ihe context of fraud examination, integrity requires all of the following EXCEPT:
- A. An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong
- B. Subordination of desires for personal gain to the interests of clients, employers, and the public
- C. Avoidance of differences of opinion
- D. Independence of mental attitude
Answer: C
Explanation:
* Integrity in Fraud Examination:
* Integrity involves critical thinking, independence, and prioritizing ethical principles over personal gain. Healthy debate and differences of opinion are integral to maintaining objectivity.
* Why Option D is Incorrect:
* Avoiding differences of opinion contradicts the need for professional skepticism and robust analysis in fraud examination.
* Conclusion:Integrity does not require the avoidance of differences of opinion, making D the correct answer.
References:ACFE Code of Professional Ethics and fraud examination standards.
NEW QUESTION # 182
According to the 2020 Report to the Nations.___________schemes ate the MOST COMMON form of occupational fraud, while_________schemes are the MOST COSTLY form of occupational fraud.
- A. Asset misappropriation: financial statement fraud
- B. Asset misappropriation; corruption
- C. Corruption, asset misappropriation
- D. Financial statement fraud: corruption
Answer: A
Explanation:
* Findings from the 2020 Report to the Nations:
* Asset misappropriation: Most common form of occupational fraud (e.g., theft of cash or inventory). It is frequent but less costly.
* Financial statement fraud: Most costly, involving significant manipulation of financial data.
* Analysis of Options:
* A. Asset misappropriation; corruption: Corruption is less costly than financial statement fraud.
* B. Corruption, asset misappropriation: Incorrect order and does not match the costliest scheme.
* C. Financial statement fraud; corruption: Incorrect pairing.
* Conclusion:Asset misappropriation is most common, and financial statement fraud is most costly.
References:2020 ACFE Report to the Nations on Occupational Fraud and Abuse.
NEW QUESTION # 183
During a fraud risk assessment, (he assessment (earn is seeking information on the ethical tone set by upper and middle managers The team members determine that, for this task, they would like to get candid one-on-one feedback from employees away from their peers. Which of the following techniques would be most helpful for them to use in gathering this information?
- A. Surveys
- B. Anonymous feedback mechanisms
- C. Focus groups
- D. Interviews
Answer: B
NEW QUESTION # 184
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