Get Latest Aug-2026 Conduct effective penetration tests using PDF4Test CFE-Fraud-Prevention-and-Deterrence [Q35-Q56]

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Get Latest [Aug-2026] Conduct effective penetration tests using PDF4Test CFE-Fraud-Prevention-and-Deterrence

Penetration testers simulate CFE-Fraud-Prevention-and-Deterrence exam PDF

ACFE CFE-Fraud-Prevention-and-Deterrence Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Fraud Prevention Programs	15–20%	– Whistleblower systems and reporting channels – Code of ethics and organizational culture – Training and awareness initiatives – Design, implementation, and monitoring
Topic 2: Corporate Governance	5–10%	– Framework and core principles – Guidance sources (OECD, Treadway Commission) – Definition and key stakeholders
Topic 3: Understanding Criminal Behavior	5–10%	– Differential reinforcement, rational choice, routine activities theory – Behavior modification: punishment vs reinforcement – Theories: differential association, social control, social learning
Topic 4: Management’s Fraud-Related Responsibilities	10–15%	– Reporting obligations and accountability – Roles in prevention, detection, and deterrence – Internal control and oversight duties
Topic 5: White-Collar Crime	15–20%	– Organizational opportunity and contributing factors – Impacts on individuals and society – Organizational vs occupational crime – Rationalization and control mechanisms – Prosecution and legal aspects – Fraud triangle and occupational fraud trends
Topic 6: ACFE Code of Professional Ethics	5–10%	– Ethical obligations and compliance – Principles and standards of conduct
Topic 7: Fraud Risk Assessment	15–20%	– Identifying and prioritizing risks – Continuous assessment and improvement – Risk response and mitigation strategies – Process and methodology

NEW QUESTION 35
To reduce the probability of fraud in financial reports, the National Commission on Fraudulent Financial Reporting, also known as the Treadway Commission, made which of the following recommendations?

Appoint a mandatory independent finance committee.

Develop a written charter for the audit committee.

Assign oversight of the hotline reporting program to shareholders.

Provide adequate resources and authority to management.

NEW QUESTION 36
The objective of anti-fraud controls is to:

Completely eliminate inherent fraud risk.

Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.

Completely eliminate residual fraud risk

Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk

NEW QUESTION 37
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

NEW QUESTION 38
Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

Professional skepticism means beginning all assignments with the belief that something is amiss.

Professional skepticism involves maintaining a mindset that no fraud has occurred

Fraud examiners should form the engagement hypothesis without regard to the available preliminary information.

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

NEW QUESTION 39
In the area of criminological theory, deterrence is the theory that tries to prevenl crime by using the threat of criminal sanctions.

True

False

NEW QUESTION 40
Which of the following is FALSE regarding an organization’s anti-fraud policy?

A detailed anti-fraud policy can make it easier to investigate and punish employees who commit fraud and other dishonest acts.

To avoid legal problems in discharging employees, the anti-fraud policy should not include any specific examples of frau and misconduct.

In developing the anti-fraud policy, management should check with legal counsel regarding any legal considerations with respect to the policy.

One of the most important considerations in developing the anti-fraud policy is to ensure every allegation is handled in a uniform manner.

NEW QUESTION 41
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

NEW QUESTION 42
Which of the following is NOT one of the three general approaches used to control corporate crime?

Strong intervention of the government

Voluntary changes in corporate attitudes and structure

Consumer action to force change

Media blacklisting of the organization

NEW QUESTION 43
According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:

The continued pressures of a culture that rewards affluence and success

The economy’s increased reliance on credit

The increased constraints of the regulatory environment for businesses

The increased opportunity for wrongdoing as a result of advancing information technologies

NEW QUESTION 44
Green, a Certified Fraud Examiner (CFE). had an ethical dilemma regarding her business contract with her professional partners. Which of the following sources of guidance would be considered the lowest level of reference to help Green in determining the most ethical course of action?

Contract law

Guidance from her family and friends

The ACFE Code of Professional Ethics

Philosophical principles related to ethics

NEW QUESTION 45
Eliece, a Certified Fraud Examiner (CFE), and Jewel are employees at Silver Inc. Jewel informs Eliece that she has knowledge of a potential financial statement fraud but does not feel comfortable sharing this information unless Eliece can promise that she will keep it confidential. How should Eliece respond?

Eliece should immediately contact management at Silver Inc. to provide information about her conversation with Jewel and her request for confidentiality.

Eliece should promise Jewel that she will keep the information confidential even though she knows that she will likely be unable to keep that promise.

Eliece should encourage Jewel to report the information to law enforcement because she cannot agree to Jewel’s request.

Eliece should tell Jewel that she will try to keep the information as confidential as possible but she might have an ethical obligation to inform their employer.

NEW QUESTION 46
Jane, a Certified Fraud Examiner (CFE), was hired lo conduct a fraud examination at XYZ Company Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring Consequently.
XYZ’s management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company’s anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management’s request.

True

False

NEW QUESTION 47
Black, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination. He did not find fraud, but. in Black’s opinion, the controls he examined were deficient. Under the ACFE Code of Professional Ethics. Black is not permitted to express his opinion on the deficient controls.

True

False

NEW QUESTION 48
Which of the following is BEST classified as a type of external fraud risk?

Collusion between contractors

Adding ghost employees to payroll

Reporting revenue in the wrong period

Embezzling incoming customer payments

NEW QUESTION 49
Controls that reduce the opportunity for individuals to successfully attempt fraud, such as separating duties, address which of the following practices within the fraud risk management funnel?

Detection.

Response.

Prevention.

Deterrence.

NEW QUESTION 50
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

NEW QUESTION 51
Which of the following scenarios is a representation of organizational crime?

A senior accountant uses company funds to pay for personal credit card charges.

A retail manager works with a friend to commit a scheme involving fraudulent product returns.

An inventory manager takes home the company’s products to sell privately.

A commercial director agrees with other businesses in the same industry to raise prices.

NEW QUESTION 52
Which of the following Is NOT considered a conflict of Interest that Is prohibited under the ACFE Code of Professional Ethics?

Undertaking an engagement that decreases the fraud examiner’s ability to perform their duties for their full-time employer

Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner’s ownership interest is disclosed

Undertaking engagements for both sides in a case of an alleged product substitution scheme

Accepting an assignment to secretly infiltrate the fraud examiner’s employing organization and transmit inside information to another party

NEW QUESTION 53
According to the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Internal Control-integrated Framework (the Framework), there are five interrelated components of a company’s internal control. Which of the following is NOT among these five components?

Monitoring

Control environment

Independent oversight

Information and communication

NEW QUESTION 54
Which of the following Is FALSE regarding a fraud risk assessment?

The assessment team should consider how employees behave as part of Its assessment

The assessment should be used to improve employee fraud awareness.

The designation of an area as being high risk does not conclusively mean that fraud is occurring there.

The objective of the assessment is to provide an estimate of the organization’s fraud losses.

NEW QUESTION 55
The objective of anti-fraud controls is to:

Completely eliminate residual fraud risk

Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk

Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.

Completely eliminate inherent fraud risk

NEW QUESTION 56
According to Diane Vaughan. which of the following factors increases an organization’s inherent inclination toward committing crime?

Rewards are given to employees who challenge the status quo

Management encourages employee loyalty through social functions

Management separates employee performance goals from company performance goals

All of the above

Tested Material Used To CFE-Fraud-Prevention-and-Deterrence Test Engine: https://www.pdf4test.com/CFE-Fraud-Prevention-and-Deterrence-dump-torrent.html

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Get Latest Aug-2026 Conduct effective penetration tests using PDF4Test CFE-Fraud-Prevention-and-Deterrence [Q35-Q56]

ACFE CFE-Fraud-Prevention-and-Deterrence Exam Syllabus Topics:

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