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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Fraud Prevention Framework | 25% | - Fraud risk governance and oversight - Fraud risk assessment processes |
| Internal Controls and Fraud Prevention | 25% | - Internal control design and effectiveness - Fraud detection and prevention controls |
| Fraud Risk Management and Deterrence | 25% | - Fraud prevention strategies and programs - Monitoring and continuous improvement |
| Corporate Governance and Ethics | 25% | - Ethical culture and tone at the top - Code of conduct and compliance programs |
ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:
Question #1
Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?
A. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks
B. Including ethics-based metrics as a component of performance evaluations
C. Establishing loosely defined job descriptions that allow employees flexibility in their roles
D. Tying employee compensation to reasonable organizational performance goals
Question #2
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?
A. Disregard the entity's selection and application of accounting policies concerning complex transactions
B. Incorporate an element of predictability in the selection of auditing procedures to be performed
C. Consider the knowledge, skill, and ability levels of the individuals who are assigned significant audit responsibilities
D. All of the above
Question #3
Which situation presents the GREATEST opportunity for occupational fraud?
A. Mandatory vacations and job rotation
B. One employee controls authorization, recordkeeping, and reconciliation functions
C. Strong segregation of duties and active monitoring
D. Independent internal audits
Question #4
According to International Organization for Standardization (ISO) 31000:2018, an organization's risk management program should be proportionate to the organization's specific operations and objectives.
A. False
B. True
Question #5
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?
A. A written charter for management
B. Adequate audit committee resources and authority
C. A mandatory independent compensation committee
D. Shareholder oversight of internal controls
Solutions:
| Question #1 Correct Answer: A | Question #2 Correct Answer: B | Question #3 Correct Answer: B | Question #4 Correct Answer: B | Question #5 Correct Answer: B |
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