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The Association of Certified Fraud Examiners (ACFE) has established itself as the world's largest anti-fraud organization, and it offers a range of certifications for professionals in the fraud examination field. The Certified Fraud Examiner - Fraud Prevention and Deterrence (CFE-Fraud-Prevention-and-Deterrence) certification exam is one of the most prestigious certifications offered by ACFE. Certified Fraud Examiner - Fraud Prevention and Deterrence Exam certification is designed to help professionals acquire the necessary skills to prevent and detect fraud.

ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q35-Q40):

NEW QUESTION # 35
Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

A. All of the above are violations.
B. Tom, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss. A year later, he received a court order to provide the client's file to the ordering court. Tom complied with the court order, even though he did not have the client's authorization to do so.
C. Vivian, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she was in a hurry to complete the investigation, she overlooked key items of evidence and ended up failing to uncover a major fraud scheme.
D. Rodrigo. a CFE. uncovered several material Internal control deficiencies unrelated to the Kickback scheme he was Investigating. In his final report to management. Rodrigo included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

Answer: C

NEW QUESTION # 36
Fraud risks related to corruption include:

A. Fraudulent customer payments
B. Payment of bribes to procure business
C. Reporting revenue in the wrong accounting period
D. Espionage by competitors

Answer: B

Explanation:
The ACFE manual lists corruption as a major fraud risk category, including "the payment of bribes to secure business advantages or contracts." Bribery is one of the key examples of corrupt practices addressed by anti- corruption standards.
Reference:ACFE Fraud Examiners Manual, 2020 International Edition -The Law Related to Fraud, Section
2.221 and 4.530.

NEW QUESTION # 37
Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

A. Fraud examiners should not relax their skeptical attitudes under any circumstances.
B. Professional skepticism means beginning all assignments with the belief that something is amiss.
C. Professional skepticism involves maintaining a mindset that no fraud has occurred
D. Fraud examiners should form the engagement hypothesis without regard to the available preliminary information.

Answer: A

Explanation:
* Professional Skepticism Defined:
* Professional skepticism is an attitude that includes a questioning mind and a critical assessment of evidence. Fraud examiners must remain vigilant to indications of potential fraud throughout an engagement.
* Consistent Application:
* ACFE standards emphasize that skepticism should be applied consistently, even if initial findings do not indicate fraud, to avoid overlooking potential risks.
* Why D is Correct:
* Relaxing skepticism can lead to missed evidence or poor judgment, undermining the examination's effectiveness.

NEW QUESTION # 38
Which of the following mechanisms can help alleviate the pressure on employees to commit fraud?

A. Discipline policies
B. Background check policies
C. Employee monitoring software
D. Employee support programs

Answer: D

NEW QUESTION # 39
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. True
B. False

Answer: A

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.
References:Criminological theories as outlined in ACFE study materials.

NEW QUESTION # 40
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