CFE Fraud Prevention And Deterrence Dumps – Valid Study Materials to Ensure Your Success

1. According to Silk and Vogel's research, business leaders rationalize legal violations by asserting that compliance with government regulations is too costly and cuts too heavily into company profits.

2. Stevens, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination at ABC Company. His examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently, ABC's management asked Stevens to state in his official examination report that the organization is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. Under the ACFE Code of Professional Ethics. Stevens is permitted to comply with management's request based on the findings of his examination.

3. In the area of criminological theory, deterrence is the theory that tries to prevenl crime by using the threat of criminal sanctions.

4. Susannah Is conducting an external audit of a company In a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking her audit procedures, she discovers evidence that senior management has been fraudulently manipulating the financial statements .

Which of the following is Susannah's BEST response to these findings?

5. Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management―Integrating with Strategy and Performance?

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

7. Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

8. According to the 2020 Report to the Nations, which of the following is the MOST COMMON method by which frauds are detected?

9. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines____________ as "a process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance."

10. Daniela, an independent Certified Fraud Examiner (CFE), was hired by Charles, executive director of a nonprofit organization, to investigate a straightforward embezzlement case. During the investigation, Daniela learns that Charles is involved in an unrelated fraud.

Under the ACFE Code of Professional Ethics. Daniela should:

11. During an external audit of an organization's financial statements. Peter, the external auditor, uncovers significant internal control deficiencies at the audit client's organization. He believes these deficiencies could result in a material misstatement of the financial statements .

Which of the following should Peter do with regard to these findings?

12. Professional auditing standards suggest that auditors incorporate an "element of predictability" in the selection of auditing procedures to be performed so that they ensure the same areas are tested in the same manner during each audit.

13. Consistently punishing perpetrators can be an effective fraud prevention mechanism

14. Which of the following statements is FALSE regarding an organization's fraud risk management program?

15. Jones, an accounting manager for a software company, wants to improve her team's adherence to the company's formal accounting policies and procedures and reduce the number of process exceptions they experience.

According to behaviorist theories, which of the following options would be the most effective way for Jones to condition her staff to follow the company's formal accounting processes?

16. During the course of a fraud examination. While, an employee of the ABC Corp.. approaches Blue, a Certified Fraud Examiner (CFE), and tells Blue that she wishes to furnish information in confidence.

Blue also is employed by the ABC Corp. Blue should:

17. Which of the following criminological theories states that individuals make a conscious decision to commit a crime and that crime can be deterred by reducing opportunities for criminal activity and increasing an individual's personal risk of being caught and punished?

18. Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

19. Having specialized departments within a company often increases the overall risk ot traud by the organization.

20. Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

21. Which of the following is a best practice to ensure a successful fraud reporting program?

22. Which of the following is NOT explicitly prohibited by the ACFE Code of Professional Ethics?

23. Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To most effectively reinforce an anti-fraud culture, management should:

24. The availability of suitable targets, absence of capable guardians, and presence of motivated offenders are the three most important elements that influence crime according to which of the following criminological theories?

25. Which of the following is a detective anti-fraud control?

26. According to behaviorists such as B. F. Skinner, which of the following scenarios is MOST LIKELY to occur when an undesired behavior is punished?

27. Which of the following theories suggests that, when considering the possibility of violating a law. people are likely to ask themselves. "What will my spouse think if they find out?"

28. In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.

29. Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but It allows exceptions for unknowing violations of the law.

30. XYZ. Inc. is a publicly traded, multi-national corporation .

Which of the following statements is TRUE regarding the corporate governance requirements that XYZ is subject to?

31. In the context of a fraud examination, integrity requires all of the following EXCEPT:

32. Which of the following is TRUE regarding prosecutions of white-collar criminals?

33. Employees should be kept unaware that management is watching for lifestyle and behavior changes In staff members that might indicate fraud.

34. The objective of anti-fraud controls is to:

35. International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the establishment of anti-fraud internal controls within an organization.

36. An effective system of anti-fraud controls

37. Benjamin, a Certified Fraud Examiner (CFE). was contacted regarding an engagement to investigate a complex money laundering case spanning numerous international jurisdictions and involving multiple cutting-edge technologies. Benjamin had previously attended a seminar on investigating money laundering schemes, but he had no other training or experience in such cases. However, he accepted the engagement and chose to conduct the work himself. Benjamin's conduct would likely be a violation of the ACFE Code of Professional Ethics.

38. Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team.

According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Smith to encourage his team members to keep their cash drawers in balance?

39. In response to a risk identified during a fraud risk assessment, management decides to implement additional internal control measures.

This response is known as:

40. In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:

41. Which of the following is NOT a responsibility of the organization's board of directors?

42. Employee support programs are a fraud prevention mechanism that addresses which leg of the Fraud Triangle

43. According to the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control-integrated Framework (the Framework), there are five interrelated components of a company's internal control .

Which of the following is NOT among these five components?

44. Which of the following is FALSE regarding an organization's anti-fraud policy?

45. 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:

46. Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.

47. Which of the following Is FALSE regarding a fraud risk assessment?

48. Which of the following statements about the fraud risk assessment process Is MOST ACCURATE?

49. A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI) .

Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?

50. 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?