- Exam Code: CFE-Fraud-Prevention
- Exam Name: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam
- Certification Provider: ACFE
- Corresponding Certification:Certified Fraud Examiner
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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Fraud Risk Management and Deterrence | 25% | - Monitoring and continuous improvement - Fraud prevention strategies and programs |
| Internal Controls and Fraud Prevention | 25% | - Fraud detection and prevention controls - Internal control design and effectiveness |
| Fraud Prevention Framework | 25% | - Fraud risk governance and oversight - Fraud risk assessment processes |
| Corporate Governance and Ethics | 25% | - Code of conduct and compliance programs - Ethical culture and tone at the top |
ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:
Maria, a Certified Fraud Examiner (CFE), is conducting a fraud risk assessment for a company where her brother serves as the Chief Financial Officer. Maria believes she can remain impartial.
What should she do?
- A. Continue the assessment but avoid reviewing financial controls
- B. Disclose the relationship and remove herself from the engagement if independence could reasonably be questioned
- C. Continue the assessment if the board verbally approves
- D. Continue the assessment because no actual fraud has been identified
Correct Answer: B 🗳️
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The objective of anti-fraud controls is to:
- A. Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.
- B. Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk
- C. Completely eliminate residual fraud risk
- D. Completely eliminate inherent fraud risk.
Correct Answer: B 🗳️
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According to ACFE research, which of the following is TRUE?
- A. Men commit significantly more frauds than women do.
- B. An unwillingness to share duties is the most reported red flag displayed by fraud perpetrators prior to the detection of their crime.
- C. Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.
- D. Most fraudsters have previous criminal convictions for fraud-related offenses.
Correct Answer: B 🗳️
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Reputational damage is an indirect cost of fraud that can be difficult for organizations to calculate.
- A. True
- B. False
Correct Answer: A 🗳️
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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, which of the following is TRUE?
- A. Black is not permitted to express his opinion on the internal control deficiencies in his report to management under any circumstances.
- B. Black may include his opinion on the internal control deficiencies in his report to management because it is a technical matter.
- C. Black may include his opinion on the internal control deficiencies in his report to management only if he gets formal approval from the board of directors.
- D. Black may include his opinion on the internal control deficiencies in his report to management only if he amends his engagement letter.
Correct Answer: B 🗳️
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