2025 ACFE CFE-Fraud-Prevention-and-Deterrence: Test Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Engine
2025 ACFE CFE-Fraud-Prevention-and-Deterrence: Test Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Engine
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The CFE exam is divided into four sections, one of which is the Fraud Prevention and Deterrence section. This section covers topics such as fraud risk assessment, fraud prevention programs, and fraud deterrence techniques. The goal of this section is to teach individuals how to develop and implement effective fraud prevention programs that can help their organizations minimize the risk of fraud.
ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q60-Q65):
NEW QUESTION # 60
A professional organization's code of conduct serves which of the following purposes?
- A. A code facilitates practical enforcement and internal discipline throughout a profession.
- B. A code provides answers to all ethical dilemmas that the organization's members might encounter.
- C. A code offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.
- D. A code acts as a substitute for legal and regulatory requirements that apply to the profession.
Answer: A
Explanation:
The ACFE manual notes that codes of conduct not only serve as a reference for guiding behavior but also enable enforcement and internal discipline within a profession.
"A code of ethical conduct serves as a reference and benchmark for ethical guidance... [and] facilitates practical enforcement and internal discipline throughout a profession." Reference:ACFE Fraud Examiners Manual, 2020 International Edition -Ethics and Professional Conduct, Section 4.901.
NEW QUESTION # 61
Having specialized departments within a company often increases the overall risk ot traud by the organization.
- A. False
- B. True
Answer: B
Explanation:
* Risks Associated with Specialized Departments:
* While specialization improves efficiency, it can create silos that hinder communication, coordination, and oversight, increasing fraud risk.
* Isolated departments may lack cross-functional checks and balances.
* Conclusion:Specialized departments often increase fraud risk if not managed with proper controls and oversight.
NEW QUESTION # 62
Ian is drafting a report containing the results of his company's fraud risk assessment process. To be MOST EFFECTIVE, Ian's report should:
- A. Include a complete list of recommended actions for management to take to address all identified risks.
- B. Focus on the findings that will make the most impact on the company's fraud risk management efforts.
- C. Contain a detailed, comprehensive list of every assessment finding.
- D. Reflect the assessment team's subjective perspective regarding the risks identified.
Answer: B
NEW QUESTION # 63
The existence of many specialized departments within a company generally decreases the overall risk of fraud within the organization.
- A. True
- B. False
Answer: B
NEW QUESTION # 64
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.
- A. False
- B. True
Answer: B
Explanation:
* Understanding Compliance Theory:
* Compliance theory emphasizes preventing crime through incentives for voluntary adherence to laws and proactive administrative measures.
* By addressing potential violations early, compliance theory aims to deter criminal behavior before it occurs.
* Application of the Theory:
* Examples include economic benefits for following regulations and monitoring mechanisms to identify early signs of noncompliance.
* Conclusion:The statement accurately describes compliance theory.
NEW QUESTION # 65
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