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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q23-Q28):

NEW QUESTION # 23
Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

A. Rodrigo. a CFE. uncovered several material Internal control deficiencies unrelated to the Kickback scheme he was Investigating. In his final report to management. Rodrigo included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.
B. Tom, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss. A year later, he received a court order to provide the client's file to the ordering court. Tom complied with the court order, even though he did not have the client's authorization to do so.
C. All of the above are violations.
D. Vivian, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she was in a hurry to complete the investigation, she overlooked key items of evidence and ended up failing to uncover a major fraud scheme.

Answer: C

Explanation:
* Analysis of Each Scenario:
* A. Rodrigo: Reporting unrelated findings without a clear mandate violates principles of focus and relevance under the ACFE Code.
* B. Vivian: Overlooking evidence demonstrates a lack of due diligence and professionalism.
* C. Tom: Complying with a court order is permissible, but failure to safeguard client confidentiality before receiving the order constitutes a breach.
* Ethical Standards:
* Each scenario demonstrates a failure to meet the ethical and professional responsibilities outlined in the ACFE Code.
* Conclusion:All scenarios represent violations of the ACFE Code of Professional Ethics.
References:ACFE Code of Professional Ethics, particularly diligence and confidentiality provisions.

NEW QUESTION # 24
In the area of criminological theory, deterrence is the theory that tries to prevenl crime by using the threat of criminal sanctions.

A. True
B. False

Answer: A

NEW QUESTION # 25
Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

A. Support for establishing stronger protection for foreign shareholders than for domestic shareholders
B. Recognition of the importance of the role of stakeholders in corporate governance
C. A request that governments have in place an appropriate framework to support good corporate governance practices
D. Guidance regarding appropriate board structures, responsibilities, and procedures

Answer: A

NEW QUESTION # 26
Which of the following factors increases an organization's inherent inclination toward committing crime according to Diane Vaughan's research?

A. Management encourages employee loyalty through social functions.
B. Management seeks diversity in attitudes and perspectives when hiring employees.
C. Management rewards employees who challenge how the company functions.
D. Management separates employee performance goals from company performance goals.

Answer: D

NEW QUESTION # 27
In response to a risk identified during a fraud risk assessment, management decides to implement additional internal control measures. This response is known as:

A. Avoiding the risk
B. Assuming the risk
C. Transferring the risk
D. Mitigating the risk

Answer: D

NEW QUESTION # 28
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