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ACFE CFE-Fraud-Prevention-and-Deterrence Exam is a certification exam offered by the Association of Certified Fraud Examiners (ACFE). CFE-Fraud-Prevention-and-Deterrence exam is designed for professionals who are responsible for fraud prevention and deterrence in their organizations. The CFE-Fraud-Prevention-and-Deterrence Exam covers a wide range of topics, including fraud prevention strategies, internal controls, risk management, and investigation techniques.

ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q125-Q130):

NEW QUESTION # 125
Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?

  • A. Evaluating employee performance based solely on productivity and profit
  • B. Establishing well-defined job descriptions to facilitate performance evaluations
  • C. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks
  • D. Tying employee compensation to reasonable organizational performance goals

Answer: A


NEW QUESTION # 126
In the context of fraud examination, integrity requires all of the following EXCEPT:

  • A. Avoidance of differences of opinion
  • B. An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong
  • C. Subordination of desires for personal gain to the interests of clients, employers, and the public
  • D. Independence of mental attitude

Answer: A


NEW QUESTION # 127
A report by a fraud examiner is privileged from disclosure by anyone other than the client.

  • A. True
  • B. False

Answer: B


NEW QUESTION # 128
Which of the following Is NOT Included In Ihe five fraud risk management principles described In Fraud Risk Management Guide, a joint publication by COSO and the ACFE?

  • A. Performing comprehensive fraud risk assessments to identify specific fraud schemes
  • B. Communicating the expectations of those governing the fraud risk management program
  • C. Developing one-time evaluations for each fraud risk management principle
  • D. Deploying preventive and detective fraud control activities to mitigate fraud risk

Answer: C

Explanation:
* Principles in the Fraud Risk Management Guide (COSO and ACFE):
* Communicating expectations regarding fraud risk management.
* Conducting comprehensive fraud risk assessments.
* Implementing preventive and detective controls.
* Monitoring and reporting the program's effectiveness.
* Analysis of Option D:
* Fraud risk management requires ongoing evaluations, not one-time assessments, to adapt to evolving risks.
* Conclusion:Option D is not included in the principles described in the Fraud Risk Management Guide.
References:COSO-ACFE Fraud Risk Management Guide.


NEW QUESTION # 129
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. The fraud risk assessment is most effective when management's influence on the process is limited
  • D. 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.

Answer: B

Explanation:
* Conducting a Fraud Risk Assessment:
* Both internal and external parties can effectively conduct fraud risk assessments.
* Internal teams provide organizational insight, while external parties bring objectivity and specialized expertise.
* Analysis of Other Options:
* B. External party only: Independence is important but not mandatory for effectiveness.
* C. Belief that fraud cannot happen: This would bias the process and render the assessment ineffective.
* D. Limiting management's influence: Management should actively participate to ensure comprehensive insights.
* Conclusion:Fraud risk assessments can be effectively conducted by both internal and external parties.
References:ACFE guidance on fraud risk assessments.


NEW QUESTION # 130
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