Approved CFE-Fraud-Prevention-and-Deterrence copyright Security Professional Exam Questions
Approved CFE-Fraud-Prevention-and-Deterrence copyright Security Professional Exam Questions
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The Certified Fraud Examiner (CFE) certification is highly sought after in the field of fraud examination and prevention. The CFE designation is recognized globally and is considered a hallmark of excellence in the anti-fraud profession. One of the CFE exam options is the Fraud Prevention and Deterrence exam, also known as the CFE-Fraud-Prevention-and-Deterrence exam.
The CFE-Fraud-Prevention-and-Deterrence Certification Exam is a comprehensive and rigorous test that requires candidates to have a deep understanding of fraud prevention and detection techniques. CFE-Fraud-Prevention-and-Deterrence Exam is made up of four sections, each of which covers a specific topic related to fraud prevention and detection. Candidates must pass all four sections to earn the certification. CFE-Fraud-Prevention-and-Deterrence exam is administered online and is timed, with candidates having four hours to complete each section. Upon passing the exam, candidates will earn the CFE-Fraud-Prevention-and-Deterrence Certification, which is recognized worldwide as a mark of excellence in the field of fraud prevention and detection.
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ACFE CFE-Fraud-Prevention-and-Deterrence Certification Exam is an essential part of the CFE program, providing individuals with the knowledge and skills needed to prevent and detect fraud in their organizations. By passing this section of the exam, individuals can demonstrate their expertise in fraud prevention and deterrence, and contribute to the fight against fraud in their organizations and communities.
ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q139-Q144):
NEW QUESTION # 139
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?
- A. Compliance
- B. Event avoidance
- C. Review and revision
- D. Risk tolerance
Answer: A
NEW QUESTION # 140
The internal auditor's fraud-related responsibilities include which of the following?
- A. Overseeing management's actions to manage fraud risks
- B. Reporting to regulators regarding the entity's vulnerability to fraud
- C. Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program
- D. Attesting that the organization's financial statements are free of material misstatements caused by fraud
Answer: C
Explanation:
Internal Auditors' Role in Fraud Risk Management:
* Internal auditors evaluate management's commitment to overseeing and addressing fraud risks as part of their assurance role.
Why A is Correct:
* Oversight of fraud risk management is a management responsibility, and internal auditors assess whether this responsibility is effectively retained and executed.
Why Other Options are Incorrect:
* B: Reporting to regulators is not a core responsibility of internal auditors.
* C: Internal auditors provide evaluation, not direct oversight.
* D: Attesting financial statement accuracy is the responsibility of external auditors, not internal auditors.
NEW QUESTION # 141
Which of the following is NOT a factor that directors and management should consider when developing a corporate governance framework for an organization?
- A. The ability of the framework to remain static during changes in the corporate landscape
- B. The organization's ethical environment
- C. The organization's cultural environment
- D. The legal and regulatory environment in which the organization operates
Answer: A
Explanation:
Corporate Governance Framework Requirements:
* A corporate governance framework must be dynamic, adapting to changes in regulations, markets, and corporate landscapes.
* It must consider legal, ethical, cultural, and operational environments.
Why B is Incorrect:
* A static framework cannot accommodate evolving business risks, regulatory changes, and cultural shifts, leading to governance failures. Flexibility is critical for sustainability and resilience.
References:
* ACFE governance best practices and COSO framework guidance highlight the importance of adaptability in governance frameworks.
NEW QUESTION # 142
Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.
- A. False
- B. True
Answer: B
Explanation:
* Impact of Reporting to Law Enforcement:
* Reporting fraud incidents to law enforcement demonstrates a zero-tolerance approach, acting as a deterrent to potential fraudsters.
* It also ensures that perpetrators face legal consequences, discouraging others from engaging in fraudulent activities.
* Prevention Mechanism:
* The public nature of such actions signals organizational commitment to ethics and integrity, enhancing its reputation and strengthening internal controls.
* Supporting References:
* ACFE guidelines advocate for reporting fraud to appropriate authorities as part of an effective fraud prevention strategy.
NEW QUESTION # 143
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:
- A. All of the above
- B. Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
- C. implement two separate sets of ethics policies, one for management and one for employees
- D. Create an environment in which employees feel safe challenging management's decisions
Answer: D
Explanation:
* Reinforcing an Anti-Fraud Culture:A strong ethical tone at the top is crucial to reducing fraud risk.
Employees must feel empowered to report concerns without fear of retaliation.
* Analysis of Options:
* A. Using a checklist: While useful, it is not sufficient alone to instill an anti-fraud culture.
* C. Separate ethics policies: A unified ethical standard for all employees fosters trust and consistency.
* B. Safe environment for challenges: This is the most effective method as it promotes transparency, accountability, and whistleblowing.
* Conclusion:Creating a safe and open environment for employees to challenge management's decisions is the most impactful action.
References:ACFE's guidelines on ethical culture and fraud prevention.
NEW QUESTION # 144
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