2024 Latest CFE-Fraud-Prevention-and-Deterrence DUMPS Q&As with Explanations Verified & Correct Answers [Q77-Q91]

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2024 Latest CFE-Fraud-Prevention-and-Deterrence DUMPS Q&As with Explanations Verified & Correct Answers

CFE-Fraud-Prevention-and-Deterrence dumps Exam Material with 140 Questions

The CFE-Fraud Prevention and Deterrence exam is a comprehensive exam that requires a significant amount of preparation. Candidates must have a strong understanding of fraud prevention and detection, as well as the legal and ethical considerations involved in investigating fraud. CFE-Fraud-Prevention-and-Deterrence exam consists of four sections, each of which covers a specific area of fraud examination.

Q77. Which of the following Is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Enterprise Risk Management-Integrating with Strategy and Performance?

Independent monitoring

Operating environment

Risk tolerance

Governance and culture

Q78. Which of the following statements is FALSE regarding an organization’s fraud risk management program?

The program must include mechanisms to address breaches in compliance.

The punishment for intentional noncompliance should be carried out in a consistent and firm manner.

Formal sanctions for intentional noncompliance should be determined and enacted privately

A specific individual or team should be designated as responsible for monitoring compliance with the program

Q79. Which of the following is FALSE regarding a background check policy for employees?

When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.

At a minimum, management should conduct a background check on any candidate who will have constant access to cash, checks, and credit card numbers, or other easily stolen items.

Where permitted by law, management should run a background check on any existing employee who is being promoted to a position that includes access to sensitive or valuable company resources, even if a background check was run on the individual at the time of hire

As part of the screening process, management should contact the references provided by the job candidate.

Q80. Based on research regarding the criminogenic nature of organizations, employees with strong personal values and ethics will always disobey a superior’s direct order to engage in fraudulent behavior, despite an inherent desire to obey authority figures.

True

Flase

Q81. 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

Q82. In the context of fraud examination, integrity requires all of the following EXCEPT:

Subordination of desires for personal gain to the interests of clients, employers, and the public

Avoidance of differences of opinion

Independence of mental attitude

An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong

Q83. The Institute of Internal Auditors’ (IIA) International Standards for the Professional Practice of Internal Auditing states that

The internal auditor must apply the skill and care of an expert whose primary responsibility is investigating fraud

The internal auditor must apply the skill and care of an expert whose primary responsibility is detecting fraud.

The internal auditor must apply the skill and care of an unbiased, infallible audit professional.

The internal auditor must apply the skill and care of a reasonably prudent and competent internal auditor

Q84. Which of the following principles of corporate governance pertains to the duty of the organization to act in the best interest of society?

Transparency

Responsibility

Fairness

Accountability

Q85. The theory of differential association is used frequently lo explain white-collar criminality. Which of the following is NOT one of the assertions or principles of differential association?

Criminal behavior is explained by an individual’s general needs and values.

Criminal behavior is acquired through participation with intimate personal groups.

Criminal behavior is learned from other people in a process of communication.

Criminal behavior is learned using the same mechanisms as other learning

Q86. For Its compliance program to be effective, an organization must perform procedures to ensure management hires only ethical Individuals who exercise a substantial measure of discretion In acting on the organization’s behalf

True

False

Q87. Which of the following is FALSE regarding the fraud risk assessment learn?

The team members should have experience in gathering and eliciting information

The team members might include both internal and external sources.

The team size should be limited to a maximum of three individuals

The team should consist of individuals with diverse knowledge, skills, and perspectives

Q88. During an external audit, the audit team identifies evidence that management has intentionally omitted some expenses from the company’s financial statements in order to conceal an asset misappropriation scheme. However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement

The auditors should assess the need to adjust the nature, timing, and extent of remaining audit procedures based on this evidence.

The auditors can ignore the misstatement because the omitted amount is less than the quantitative materiality threshold and therefore immaterial to the audit.

The auditors do not need to be concerned with this evidence, as asset misappropriation schemes are not considered relevant or material for external audit purposes.

Q89. Jody has been working at ABC Corp. for ten years. He steals funds from the company and tells himself that the company owes it to him for his “unrewarded hard work and loyalty” This situation BEST illustrates which leg of the Fraud Triangle?

Perceived non-shareable financial need

Rationalization

Perceived opportunity

Lack of personal Integrity

Q90. Jenny is a highly respected employee at XYZ Corp. Her husband’s gambling addiction has caused them to have a significant amount of debt. Jenny begins stealing money from the company to cover her husband’s gambling losses. This situation best illustrates which leg of the Fraud Triangle?

Rationalization

Perceived opportunity

Perceived acquiescence

Perceived non-shareable financial need

Q91. Which of the following is TRUE regarding the communication of the fraud risk assessment process?

The communication should be in the form of a personalized message from the assessment sponsor

The communication should actively encourage employees to participate in the assessment process

The communication should be visibly disseminated throughout the business

All of the above

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