[2024] Pass Key features of CFE-Fraud-Prevention-and-Deterrence Course with Updated 140 Questions [Q37-Q60]

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[2024] Pass Key features of CFE-Fraud-Prevention-and-Deterrence Course with Updated 140 Questions

CFE-Fraud-Prevention-and-Deterrence Sample Practice Exam Questions 2024 Updated Verified

ACFE CFE-Fraud-Prevention-and-Deterrence certification exam is designed to test individuals’ knowledge and understanding of fraud prevention and deterrence. CFE-Fraud-Prevention-and-Deterrence exam is offered by the Association of Certified Fraud Examiners (ACFE), which is the world’s largest anti-fraud organization, with over 85,000 members in more than 160 countries. The CFE-Fraud-Prevention-and-Deterrence certification is highly respected in the field of fraud prevention and is recognized globally.

Q37. Jenny is a highly respected employee at XYZ Corp Her husbands gambling addiction has caused them to have a significant amount of debt Jenny begins stealing money from the company to cover her husbands gambling losses. This situation best illustrates which leg of the Fraud Triangle?

Perceived opportunity

Rationalization

Perceived non-shareable financial need

Perceived acquiescence

Q38. Employees should be kepi unaware that management is watching for lifestyle and behavior changes in staff members that might indicate fraud

True

False

Q39. Jane, a Certified Fraud Examiner (CFE), was hired lo conduct a fraud examination at XYZ Company Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring Consequently. XYZ’s management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company’s anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management’s request.

True

False

Q40. The theory of differential association is used frequently to explain white-collar criminality Which of the following is NOT one of the assertions or principles of differential association?

Criminal behavior is learned from other people in a process of communication

Criminal behavior is learned using the same mechanisms as other learning

Criminal behavior is acquired through participation with intimate personal groups

The process of learning criminal behavior Is the same as pure imitation

Q41. Jenny is a highly respected employee at XYZ Corp. Her husband’s gambling addiction has caused them to have a significant amount of debt. Jenny begins stealing money from the company to cover her husband’s gambling losses. This situation best illustrates which leg of the Fraud Triangle?

Rationalization

Perceived opportunity

Perceived acquiescence

Perceived non-shareable financial need

Q42. Which of the following is among the audit committee s primary responsibilities related to fraud risk management?

Understanding how internal and external audit strategies address fraud risk

Designing the fraud risk management program

Punishing fraud perpetrators discovered through fraud risk management activities

Implementing the fraud risk management program

Q43. The internal auditor’s fraud-related responsibilities include which of the following?

Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program

Reporting to regulators regarding the entity’s vulnerability to fraud

Overseeing management’s actions to manage fraud risks

Attesting that the organization’s financial statements are free of material misstatements caused by fraud

Q44. The International Organization of Securities Commissions’ (IOSCO) Principles for Auditor Oversight states that auditor oversight should involve a regular review process designed to ascertain whether audit firms adhere to quality control policies and procedures.

True

False

Q45. Which of the following Is FALSE regarding proactive fraud auditing procedures?

Fraud audit procedures should be designed to incorporate an element of surprise

Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods

Fraud assessment questioning techniques are most appropriately used as part of the normal audit process

Implementing proactive fraud audit procedures demonstrates management’s intention to aggressively look for possible fraudulent conduct

Q46. Which of the following criminological theories asserts that the three elements that have the most influence on crime are the availability of suitable targets, absence of capable guardians, and presence of motivated offenders?

Rational choice theory

Differential association theory

Routine activities theory

Social control theory

Q47. Which of the following is FALSE regarding a background check policy for employees?

When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.

At a minimum, management should conduct a background check on any candidate who will have constant access to cash, checks, and credit card numbers, or other easily stolen items.

Where permitted by law, management should run a background check on any existing employee who is being promoted to a position that includes access to sensitive or valuable company resources, even if a background check was run on the individual at the time of hire

As part of the screening process, management should contact the references provided by the job candidate.

Q48. Which of the following Is NOT considered a conflict of Interest that Is prohibited under the ACFE Code of Professional Ethics?

Undertaking an engagement that decreases the fraud examiner’s ability to perform their duties for their full-time employer

Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner’s ownership interest is disclosed

Undertaking engagements for both sides in a case of an alleged product substitution scheme

Accepting an assignment to secretly infiltrate the fraud examiner’s employing organization and transmit inside information to another party

Q49. Which of the following is one of the recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

A mandatory independent compensation committee

Shareholder oversight of internal controls

A written charter for management

Adequate audit committee resources and authority

Q50. 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?

Surveys

Anonymous feedback mechanisms

Interviews

Focus groups

Q51. According to G20/OECD Principles of Corporate Governance (the Principles):

Governments should have in place a corporate governance framework that promotes transparent and fair markets

Companies should disclose all financial information to investors, regardless of the cost burden of the disclosure

A corporate governance framework should focus on the rights of shareholders but does not need to include the rights of other organizational stakeholders

All of the above

Q52. Maria conducted a fraud examination that led to a valid confession of guilt from Rit a. In Maria’s verbal report to her superiors, she stated that, in her opinion. “Rita is guilty of embezzlement.” Maria has just violated the ACFE Code of Professional Ethics.

True

False

Q53. According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:

The continued pressures of a culture that rewards affluence and success

The economy’s increased reliance on credit

The increased constraints of the regulatory environment for businesses

The increased opportunity for wrongdoing as a result of advancing information technologies

Q54. For its compliance program to be effective, an organization must promote the program through appropriate incentives for compliance.

True

False

Q55. Which of the following is NOT a purpose served by a professional organization s code of conduct?

It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles

It serves as a reference and benchmark for ethical guidance

It provides clear answers to all ethical dilemmas the organization s members might face

It facilitates practical enforcement and profession-wide internal discipline

Q56. Which of the following is TRUE regarding G20/OECD Principles of Corporate Governance (the Principles)?

The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them

The Principles state that an entity’s corporate governance framework should discourage active cooperation between corporations and stakeholders in creating wealth.

The Principles are intended to be applicable in developed economies but not in emerging markets.

The Principles state that an entity’s corporate governance framework should ensure the equitable treatment of all shareholders.

Q57. ABC. Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that ABC is subject to?

ABC must comply with specific listing standards for the stock exchange(s) on which it is listed

ABC is required to comply with G20/OECD Principles of Corporate Governance

ABC is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions

ABC is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.

Q58. Which of the following is TRUE regarding the internal audit function’s reporting responsibilities pertaining to fraud?

The internal audit function should discuss how and when to report fraud-related issues with senior management and the board of directors before such issues arise.

The internal audit function is permitted, but not required, to periodically report about the organization’s fraud risks to senior management and the board of directors.

The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence.

The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.

Q59. Which of the following is NOT a way that an organization’s fraud risk assessment should be incorporated into the audit process”

It should be used to replace the auditor’s own identification and assessment of fraud risks.

It should be used to assess whether there is a moderate-to-high risk of management override of internal controls within the moderate-to-high fraud risk areas

It should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.

It should be used to design audit tests to evaluate whether the controls are operating effectively

Q60. Which of the following statements is FALSE?

Controls do little good in preventing theft and fraud if those at risk do not know of their presence

Most experts agree that it is harder to detect frauds than to prevent them

Conducting covert audits is among the most effective fraud prevention methods

Educating employees about company hotlines and reporting programs increases their perception of detection

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The CFE-Fraud-Prevention-and-Deterrence Certification Exam is an ideal certification for professionals who work in the fields of auditing, accounting, law enforcement, and risk management. CFE-Fraud-Prevention-and-Deterrence exam is designed to test the candidate’s knowledge and understanding of the principles, techniques, and tools used in fraud prevention and detection. Certified Fraud Examiner – Fraud Prevention and Deterrence Exam certification is highly valued by employers and is seen as an important credential for individuals who are serious about advancing their careers in the field of fraud prevention and deterrence. Additionally, CFEs are required to adhere to a strict code of ethics, which ensures that they maintain the highest standards of professionalism and integrity in their work.

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