ACFE Updated CFE-Fraud-Prevention-and-Deterrence Exam Questions and Answers by preston

Reporting Fraud Risk Assessment Results:

Reports should align with the organization's operational language to ensure comprehension by management and stakeholders.

Why A is Correct:

Using business-appropriate language ensures effective communication of findings and recommendations.

Why Other Options are Incorrect:

B: Comprehensive details may overwhelm the audience; only key findings are usually reported.

C: Reports should reflect objective analysis, not subjective perspectives​​.

 Fraud Prevention Methods:

Prevention strategies often focus on education, awareness, and robust controls rather than covert methods. While covert audits can detect fraud, they are not primarily preventive.

 Why D is False:

Covert audits are reactive and focused on identifying existing fraud, not preventing it.

 Why Other Options are True:

A, B, and C accurately describe key aspects of fraud prevention, such as the importance of perception of detection and the challenges of detecting fraud​​.

The G20/OECD Principles of Corporate Governance emphasize the importance of promoting transparent and fair markets and ensuring the efficient allocation of resources. These principles provide a framework applicable across various jurisdictions, aiming to enhance the integrity and functioning of financial markets globally.

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ACFE Code of Professional Ethics on Reporting Findings:

The Code allows fraud examiners to report on deficiencies in controls if these are relevant to their engagement. Highlighting such deficiencies helps improve the organization’s anti-fraud measures.

Why B is Correct:

Black is permitted to express his opinion about deficient controls, even if no fraud is found, as long as his conclusions are based on evidence and within the scope of his professional expertise.

References:

ACFE ethical guidelines encourage examiners to report all relevant findings to promote transparency and improved governance​​.

References for All Questions:

ISA 240 and professional auditing standards on fraud-related responsibilities​​.

ACFE Code of Professional Ethics and Fraud Examination Guide​​.

Principles of professional skepticism in fraud detection and examination​​.