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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q167-Q172):

NEW QUESTION # 167
A professional organization's code of conduct serves which of the following purposes?

• A. It offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.
• B. It replaces the need for individuals to consult their own principles.
• C. It acts as a substitute for legal and regulatory requirements that apply to the profession.
• D. It functions as a reference and benchmark for ethical guidance.

Answer: D

 

NEW QUESTION # 168
The objectives of a fraud risk management program include:

• A. All of the above
• B. Proactively identifying fraud risks
• C. Punishing fraud perpetrators
• D. Limiting the damage caused by fraud occurrences

Answer: A

Explanation:
* Objectives of a Fraud Risk Management Program:
* A. Proactively identifying fraud risks: A fundamental goal is to identify and assess potential fraud risks to implement preventative measures.
* B. Limiting the damage caused by fraud occurrences: Programs should have mechanisms in place to detect and respond to fraud promptly to minimize harm.
* C. Punishing fraud perpetrators: Punishment serves as both a deterrent and a means of reinforcing the organization's commitment to ethical behavior.
* Comprehensive Objective Coverage:
* Effective fraud risk management includes preventative, detective, and corrective measures.
* Conclusion:All the listed objectives are essential components of a fraud risk management program.

 

NEW QUESTION # 169
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

 

NEW QUESTION # 170
Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

• A. Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file. Susan complied with the court order, even though she did not have the client's authorization to do so.
• B. All of the above are violations
• C. Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.
• D. Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.

Answer: B

Explanation:
* Analysis of Each Option:
* A. Green's conduct: Including unrelated deficiencies violates the principle of relevance and focus in reporting. It may lead to confusion or breach professional diligence.
* B. Stephanie's conduct: Delegating tasks without oversight or review violates the ACFE Code's requirement for due diligence.
* C. Susan's conduct: Failing to seek client authorization before disclosing records (even under a court order) breaches confidentiality provisions unless explicitly required by law.
* Key Ethical Considerations:
* CFEs must adhere to principles of confidentiality, diligence, and focus in their work.
* Failing to follow these standards compromises the integrity and credibility of their practice.
* Conclusion:All the described scenarios involve violations of the ACFE Code of Professional Ethics.

 

NEW QUESTION # 171
According to Diane Vaughan, which of the following factors increases an organization's inherent inclination toward committing crime?

• A. Management links employee performance goals with company performance goals
• B. Rewards are given to employees who challenge the status quo
• C. Management seeks out diversity in attitudes and perspectives when hiring employees
• D. All of the above

Answer: A

Explanation:
* Diane Vaughan's Research:
* Vaughan highlights that linking employee performance goals with company goals can create undue pressure, fostering an environment where unethical behavior becomes rationalized.
* Analysis of Other Options:
* A. Diversity in hiring: Encourages broader perspectives and does not inherently lead to crime.
* B. Rewarding challenges to the status quo: Promotes innovation and integrity, reducing crime risk.
* Conclusion:Management's linking of performance goals with company goals is the factor most associated with increased crime inclination.

 

NEW QUESTION # 172
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