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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Fraud Prevention and Deterrence | 25% | - Ethics and corporate governance - Fraud prevention programs and frameworks - Anti-fraud policies and procedures - Internal control systems and evaluation - Monitoring, auditing, and continuous improvement - Fraud risk governance and organizational culture - Fraud deterrence strategies and controls - Whistleblowing and reporting mechanisms - Fraud risk assessment |
ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:
Which of the following is TRUE regarding the internal audit function's reporting responsibilities pertaining to fraud?
- A. 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.
- B. 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.
- C. 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.
- D. The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.
Correct Answer: A 🗳️
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Which of the following statements is FALSE?
- A. Educating employees about company hotlines and reporting programs increases their perception of detection
- B. Controls are not effective in preventing theft and fraud If those at risk do not know of their presence
- C. Conducting covert audits is among the most effective fraud prevention methods
- D. Most experts agree that it is harder to detect frauds than to prevent them
Correct Answer: C 🗳️
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Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.
- A. True
- B. False
Correct Answer: A 🗳️
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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. Deploying preventive and detective fraud control activities to mitigate fraud risk
- B. Communicating the expectations of those governing the fraud risk management program
- C. Performing comprehensive fraud risk assessments to identify specific fraud schemes
- D. Developing one-time evaluations for each fraud risk management principle
Correct Answer: D 🗳️
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According to International Organization for Standardization (ISO) 31000:2018, an effective and efficient risk management program contains all of the following principles EXCEPT:
- A. The program is customized and proportionate to the organization's operations and objectives.
- B. The program facilitates continuous improvement.
- C. The program takes human and cultural factors into account.
- D. The program is static and consistent, even during times of organizational change.
Correct Answer: D 🗳️
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