CFE-Fraud-Prevention-and-Deterrence 100% Pass Guaranteed Download Certified Fraud Examiner Exam PDF Q&A [Q42-Q66]

CFE-Fraud-Prevention-and-Deterrence 100% Pass Guaranteed Download Certified Fraud Examiner Exam PDF Q&A [Q42-Q66]

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CFE-Fraud-Prevention-and-Deterrence 100% Pass Guaranteed Download Certified Fraud Examiner Exam PDF Q&A

CFE-Fraud-Prevention-and-Deterrence Practice Test Dumps with 100% Passing Guarantee

ACFE CFE-Fraud-Prevention-and-Deterrence Exam is a rigorous certification program that requires individuals to meet certain eligibility requirements before they can take the exam. To be eligible for the certification program, individuals must have a minimum of two years of professional experience in a field related to fraud prevention and deterrence. In addition, individuals must also meet certain educational requirements, including having a bachelor’s degree or higher from an accredited university.

NO.42 Which of the following is NOT a responsibility of the organization’s board of directors?

Serving as the intermediaries between shareholders and management

Acting as guardians of the organization’s resources and assets

Directing employees to execute business activities

Assessing the strategy and underlying purpose of management’s decisions and actions

NO.43 Which of the following scenarios would MOST LIKELY be considered a violation of the ACFE Code of Professional Ethics?

Grace, a CFE, uncovered internal control deficiencies that were material but unrelated to the financial statement fraud she was investigating. In her final report to management, Grace included information about the deficiencies despite their being unrelated to the situation she was hired to investigate.

Eric, a CFE, accepted a fraud examination assignment and then instructed his employee to assess the company’s accounts receivable for indications of fraud. He accepted the employee’s work that showed no evidence of fraud without conducting his own assessment. However, the employee missed some key information, causing Eric to fail to uncover a costly fraud scheme.

Mae, a CFE, was hired by a client to conduct a fraud examination but found nothing unusual. A year later, she received a legal order from the local prosecutor’s office to provide the client’s file. Mae complied with the court order despite not having the client’s authorization to provide the file.

All of the above are violations.

NO.44 Who is ultimately responsible lor ensuring the effectiveness of the organization’s anti-fraud program?

Internal auditors

The compliance function

Management

External auditors

NO.45 According to Silk and Vogel’s research, which of the following is one of the ways that businesses rationalize illegal conduct?

Government regulations are justified because the additional costs of regulations and bureaucratic procedures increase government profits.

Violations are caused by innocent errors in judgment rather than economic necessity.

Government regulation is unnecessary because the matters being regulated are unimportant.

Corporate violations that involve large sums of money are often spread among so many organizations that each gains very little individually.

NO.46 Which of the following is a detective anti-fraud control?

Separation of duties

Hiring policies and procedures

Independent reconciliations

Fraud awareness training

NO.47 Which of the following is NOT an effective way to help prevent fraud through the organization’s performance measurement and management programs?

Including ethics-based metrics as a component of performance evaluations

Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks

Establishing loosely defined job descriptions that allow employees flexibility in their roles

Tying employee compensation to reasonable organizational performance goals

NO.48 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?

Routine activities theory

Differential association theory

Rational choice theory

Social conflict theory

NO.49 The objectives of a fraud risk management program include

Proactively identifying fraud risks

Limiting the damage caused by fraud occurrences

Punishing fraud perpetrators

All of the above

NO.50 Which of the following choices is an example of an anti-fraud control that is primarily preventive in nature?

Continuous audit techniques

Proactive data analysis techniques

Employee background checks

Whistleblower hotline

NO.51 For Its compliance program to be effective, an organization must perform procedures to ensure management hires only ethical Individuals who exercise a substantial measure of discretion In acting on the organization’s behalf

True

False

NO.52 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?

The organization’s cultural environment

The organization’s legal and regulatory environment

The organization’s physical operating environment

The organization’s ethical environment

NO.53 In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss This response is known as:

Mitigating the risk

Assuming the risk

Avoiding the risk

Transferring the risk

NO.54 Who is ultimately responsible for responding appropriately to instances of fraud within an organization?

Internal auditors

The audit committee

General counsel

Management

NO.55 Employees should be kept unaware that management is watching for lifestyle and behavior changes In staff members that might indicate fraud.

True

False

NO.56 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?

Conditioning theory

Routine activities theory

Rational choice theory

Social control theory

NO.57 In Ihe context of fraud examination, integrity requires all of the following EXCEPT:

An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong

Subordination of desires for personal gain to the interests of clients, employers, and the public

Independence of mental attitude

Avoidance of differences of opinion

NO.58 According to professional auditing standards, auditors should do which of the following as part of addressing the assessed risks of material misstatement due to fraud in the financial statements?

Incorporate an element of predictability in the selection of auditing procedures to be performed

Consider the knowledge, skill, and ability levels of the individuals who are assigned significant audit responsibilities

Disregard the entity’s selection and application of accounting policies concerning complex transactions

All of the above

NO.59 Joanna is leading the fraud risk assessment process for her organization. Which of the following considerations about the fraud risk assessment process is MOST ACCURATE and should be incorporated into Joanna’s plans?

To ensure the independence of the team members, a consultant or another external party must conduct the fraud risk assessment.

If the individuals conducting the fraud risk assessment believe that fraud could not happen within the organization, then the assessment process should reflect that belief.

The fraud risk assessment can be conducted effectively by people inside or outside of the organization.

The fraud risk assessment is most effective when management’s influence on the process is limited.

NO.60 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.

True

False

NO.61 Which of the following statements regarding document retention policies (DRPs) is TRUE?

Document retention policies do not need to include protocols for preserving electronic documents as most IT systems automatically preserve copies of such data

When establishing a document retention policy, management should consider any industry-specific rules for documenting and regaining records

An effective document retention policy permits the organization to continue the destruction of documents when faced with potential litigation

All of the above

NO.62 Which of the following statements Is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

Fraud examiners should not relax their skeptical attitudes under any circumstances.

Professional skepticism involves maintaining a mindset that no fraud has occurred

Fraud examiners should form the engagement hypothesis without regard to the nature of the assignment

Professional skepticism can be dispelled only by evidence

NO.63 The findings of the 2018 Report to the Nations include all of the following EXCEPT:

More occupational frauds are committed by women than by men.

The majority of employees who commit occupational fraud are first-lime offenders.

The median losses caused by executives are higher than those caused by staff-level employees

The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is living beyond their means

NO.64 Ian is drafting a report containing the results of his company’s fraud risk assessment process. To be MOST EFFECTIVE, Ian’s report should:

Reflect the assessment team’s subjective perspective regarding the risks identified.

Contain a detailed, comprehensive list of every assessment finding.

Focus on the findings that will make the most impact on the company’s fraud risk management efforts.

Include a complete list of recommended actions for management to take to address all identified risks.

NO.65 Which of the following statements regarding the objectives of a fraud risk management program is TRUE?

A fraud risk management program should only focus on addressing fraud after it occurs.

A fraud risk management program should incorporate policies and procedures designed to both prevent and detect fraud but should not address fraud responses.

A fraud risk management program should include the formal procedures that management takes in response to a fraud, such as rebuilding stakeholders’ confidence in the organization.

A fraud risk management program should prioritize activities that proactively identify and assess fraud risks over activities that detect fraud while it is occurring.

NO.66 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?

Give shareholders oversight of hotline reporting programs

Have adequate compensation committee resources and authority

Develop a written charter for management

Have a mandatory independent audit committee