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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Fraud Prevention Framework25%- Fraud risk governance and oversight
- Fraud risk assessment processes
Topic 2: Internal Controls and Fraud Prevention25%- Fraud detection and prevention controls
- Internal control design and effectiveness
Topic 3: Fraud Risk Management and Deterrence25%- Fraud prevention strategies and programs
- Monitoring and continuous improvement
Topic 4: Corporate Governance and Ethics25%- Code of conduct and compliance programs
- Ethical culture and tone at the top

ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:

Question #1

A company implements mandatory job rotation within its accounting department. What fraud risk benefit does this provide?

  • A. It increases opportunities for concealment
  • B. It helps expose irregularities when duties change hands
  • C. It eliminates all payroll fraud
  • D. It discourages independent review
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Correct Answer: B  🗳️

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Question #2

Which of the following statements is TRUE according to rational choice theory?

  • A. Crime originates from a rational and conscious decision made by the perpetrator in order to receive an intended benefit.
  • B. Crime can be deterred by increasing the personal benefit to potential perpetrators.
  • C. Crime originates from an instinctual response to external stimuli without any rational or conscious decision by the perpetrator.
  • D. Crime can be deterred by decreasing the personal risk to potential perpetrators.
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Correct Answer: A  🗳️

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Question #3

Which of the following statements regarding recommended vendor due diligence procedures is MOST ACCURATE?

  • A. An organization should avoid revealing that it is seeking information about potential vendors prior to starting a relationship with them.
  • B. An organization should request that new vendors fill out a questionnaire about their background immediately after signing a contract with them.
  • C. An organization should include a clause in the contract requiring the vendor to report any misconduct before entering into an agreement with them.
  • D. An organization should subject vendors to an internal audit conducted by the organization's own auditors before agreeing to do business with them.
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Correct Answer: C  🗳️

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Question #4

Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?

  • A. Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented tnem.
  • B. Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program's effectiveness.
  • C. Management should tailor the detailed objectives of the fraud risk management program to the organization's specific needs and goals.
  • D. Management must balance the investment in anti-fraud controls with the benefit of those controls and the amount of risk it is willing to accept.
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Correct Answer: B  🗳️

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Question #5

Which of the following is one of the four recommendations made by the National Commission on Fraudulent Financial Reporting the Treadway Commission to reduce the probability of fraud in financial reports?

  • A. Give shareholders oversight of internal controls.
  • B. Have a mandatory independent compensation committee.
  • C. Have adequate audit committee resources and authority.
  • D. Develop a written charter for management.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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