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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q34-Q39):

NEW QUESTION # 34
Which of the following choices is an example of an anti-fraud control that is primarily detective in nature?

A. Separation of employee duties
B. Hiring policies and procedures
C. Continuous audit techniques
D. Employee background checks

Answer: C

Explanation:
Detective controls are designed to identify fraud or errors that have already occurred. Continuous audit techniques serve as a detective control by automatically monitoring transactions and flagging anomalies or irregularities for further investigation. On the other hand, preventive controls such as separation of duties, background checks, and hiring policies aim to stop fraud before it happens.

NEW QUESTION # 35
Which of the following is TRUE regarding the communication of the fraud risk assessment process?

A. The communication should be visibly disseminated throughout the business
B. The communication should actively encourage employees to participate in the assessment process
C. All of the above
D. The communication should be in the form of a personalized message from the assessment sponsor

Answer: C

NEW QUESTION # 36
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.

A. False
B. True

Answer: A

Explanation:
* Ethical Responsibilities of a CFE:
* Under the ACFE Code of Professional Ethics, a Certified Fraud Examiner has the responsibility to report all relevant findings honestly and comprehensively, even if no fraud is identified.
* Rule 2 states that CFEs must "perform all professional engagements with due diligence" and report any material findings.
* Expressing Opinions on Deficient Controls:
* CFEs are expected to provide constructive recommendations, including noting control deficiencies that could lead to fraud or operational risks.
* Failing to express an opinion on deficiencies would not align with professional standards of diligence and full disclosure.
* Conclusion:Black is permitted, and indeed encouraged, to express his professional opinion on the deficient controls as part of his ethical obligations.
References:ACFE Code of Professional Ethics, specifically rules related to diligence and full disclosure.

NEW QUESTION # 37
The existence of many specialized departments within a company generally decreases the overall risk of fraud within the organization.

A. False
B. True

Answer: A

Explanation:
* Impact of Specialized Departments on Fraud Risk:While specialization improves operational efficiency, it can also create silos, reducing oversight and coordination. This fragmentation may increase the overall fraud risk.
* Key Considerations:
* Fraud often occurs in areas where controls and communication are weak. Specialized departments may inadvertently facilitate fraud by isolating information.
* Cross-departmental collaboration and centralized controls are essential to mitigate these risks.
* Conclusion:The existence of many specialized departments increases the risk of fraud if not properly managed.

NEW QUESTION # 38
Which of the following statements is MOST ACCURATE regarding an effective system of anti-fraud controls?

A. It focuses more on preventive controls than detective controls.
B. It fully eliminates the risk of fraud by removing opportunities for misbehavior.
C. It prioritizes implementing detective controls over preventive controls.
D. It deters fraudsters by increasing the perception that fraud will be detected.

Answer: D

NEW QUESTION # 39
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