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The CFE-Fraud Prevention and Deterrence exam is an important certification for professionals who are involved in the prevention and detection of fraud. CFE-Fraud-Prevention-and-Deterrence Exam covers a wide range of topics, and requires a significant amount of preparation. Certified Fraud Examiner - Fraud Prevention and Deterrence Exam certification is recognized by employers around the world, and can lead to new career opportunities in the field of fraud examination.

ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q213-Q218):

NEW QUESTION # 213
Which of the following is NOT explicitly prohibited by the ACFE Code of Professional Ethics?

A. Acting in a way that could be deemed unethical by the industry
B. Participating in an activity where there is an undisclosed conflict of interest
C. Engaging in behavior that is against the law
D. Drawing conclusions based upon evidence

Answer: D

Explanation:
* ACFE Code of Professional Ethics Overview:
* The Code explicitly prohibits unethical behavior, undisclosed conflicts of interest, and illegal activities. However, drawing evidence-based conclusions is encouraged as part of professional practice.
* Why B is Correct:
* Drawing conclusions based on evidence is central to the fraud examination process and is explicitly supported by ACFE standards.
* Why Other Options are Prohibited:
* A, C, and D: Engaging in unethical, conflicting, or illegal activities violates ACFE ethical guidelines.
References for All Questions:
* ACFE Fraud Examination Guide and Code of Professional Ethics.
* Best practices for fraud risk assessment and reporting.
* Reporting standards and ethics in fraud examination.

NEW QUESTION # 214
During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization's reported revenue amount 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?

A. The auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.
B. The auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold
C. The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.
D. The auditors should reconsider the reliability of the audit evidence they have previously obtained.

Answer: D

Explanation:
* Implications of Management Manipulation:
* Intentional manipulation, even if quantitatively immaterial, raises concerns about the reliability of management representations and the integrity of audit evidence.
* Why Option A is Correct:
* Reassessing the reliability of previously obtained evidence ensures that the auditors address potential biases or systemic issues arising from management's actions.
* Analysis of Other Options:
* B. Withdrawing from the audit: Premature unless the issue is pervasive.
* C. Legal definition of fraud: Auditors are not required to meet this threshold for assessing evidence.
* D. Quantitative materiality: Misstatements can be qualitatively material if they indicate intentional manipulation.
* Conclusion:The auditors must reconsider the reliability of evidence due to the qualitative implications of management's actions.

NEW QUESTION # 215
In Ihe context of fraud examination, integrity requires all of the following EXCEPT:

A. An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong
B. Independence of mental attitude
C. Avoidance of differences of opinion
D. Subordination of desires for personal gain to the interests of clients, employers, and the public

Answer: C

Explanation:
Integrity in Fraud Examination:
Integrity involves critical thinking, independence, and prioritizing ethical principles over personal gain.
Healthy debate and differences of opinion are integral to maintaining objectivity.
Why Option D is Incorrect:
Avoiding differences of opinion contradicts the need for professional skepticism and robust analysis in fraud examination.
Conclusion:Integrity does not require the avoidance of differences of opinion, making D the correct answer.
References:ACFE Code of Professional Ethics and fraud examination standards.

NEW QUESTION # 216
Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?

A. Establishing loosely defined job descriptions that allow employees flexibility in their roles
B. Including ethics-based metrics as a component of performance evaluations
C. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks
D. Tying employee compensation to reasonable organizational performance goals

Answer: A

NEW QUESTION # 217
Formally documenting and communicating organizational hierarchies, including the proper flow of information, can hinder an organization's fraud prevention initiatives.

A. True
B. False

Answer: A

NEW QUESTION # 218
......

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Evaluate Your Skills with Online ACFE CFE-Fraud-Prevention-and-Deterrence Practice Test Engine

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q213-Q218):

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