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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Fraud Prevention and Deterrence | 25% | - Fraud deterrence strategies and controls - Monitoring, auditing, and continuous improvement - Fraud prevention programs and frameworks - Fraud risk assessment - Whistleblowing and reporting mechanisms - Fraud risk governance and organizational culture - Anti-fraud policies and procedures - Internal control systems and evaluation - Ethics and corporate governance |
ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:
Which of the following statements regarding monitoring employees for warning signs of fraud is MOST ACCURATE?
- A. Managers should only observe employees for signs of suspicious behavioral or lifestyle changes if they can do so without the employees' knowledge.
- B. Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.
- C. Managers should be instructed to observe employees for any unusual lifestyle improvements, such as an unexplained increase in luxury purchases.
- D. An increase in employee wealth is always a sign of fraud that should be investigated.
Correct Answer: C 🗳️
Why is vendor due diligence important in anti-fraud programs?
- A. It eliminates contract negotiations
- B. It helps identify fraud, corruption, and compliance risks before engagement
- C. It guarantees vendor profitability
- D. It replaces procurement controls
Correct Answer: B 🗳️
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Which of the following is LEAST LIKELY to be a factor that directors and management should consider when developing a corporate governance framework for an organization?
- A. The organization's ethical environment
- B. The organization's cultural environment
- C. The organization's physical operating environment
- D. The organization's legal and regulatory environment
Correct Answer: C 🗳️
To reinforce an anti-fraud culture, it is BEST for an organization's management to:
- A. Demonstrate the same ethical behavior required of individuals at lower levels of the company.
- B. Use a checklist of initiatives to ensure that all the elements of a strong corporate culture are in place.
- C. Discipline any employees who question their direct supervisor's behavior or policies.
- D. Discourage employees from voicing concerns regarding senior leadership's actions or decisions.
Correct Answer: A 🗳️
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Which of the following controls would MOST effectively reduce the risk of fictitious vendors being added to the accounting system?
- A. Independent review of vendor setup requests with supporting documentation
- B. Annual inventory counts
- C. Increasing employee bonuses
- D. Encrypting vendor payment files
Correct Answer: A 🗳️
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