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Latest CFE-Fraud-Prevention-and-Deterrence Braindumps Pdf, Valid CFE-Fraud-Prevention-and-Deterrence Exam Prep

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q206-Q211):

NEW QUESTION # 206
During a fraud risk assessment, the assessment team is seeking information on the ethical tone set by upper and middle managers. The team members determine that, for this task, they would like to get candid one-on- one feedback from employees away from their peers. Which of the following techniques would be most helpful for them to use in gathering this information?

A. Focus groups
B. Surveys
C. Interviews
D. Anonymous feedback mechanisms

Answer: C

Explanation:
* Purpose of the Task:
* The team seeks candid feedback on ethical tone, which requires a confidential and direct interaction method.
* Comparison of Techniques:
* A. Interviews: Effective for obtaining one-on-one feedback in a private setting.
* B. Focus groups: Group dynamics may inhibit candid responses due to peer pressure.
* C. Anonymous feedback mechanisms: These provide insights but lack the depth and follow-up opportunities of interviews.
* D. Surveys: While useful for broad input, surveys are less effective for detailed exploration of ethical tone.
* Conclusion:Interviews are the most helpful technique for gathering one-on-one candid feedback.

NEW QUESTION # 207
Which of the following statements regarding the objectives of a fraud risk management program is TRUE?

A. A fraud risk management program should only focus on addressing fraud after it occurs.
B. A fraud risk management program should incorporate policies and procedures designed to both prevent and detect fraud but should not address fraud responses.
C. A fraud risk management program should include the formal procedures that management takes in response to a fraud, such as rebuilding stakeholders' confidence in the organization.
D. A fraud risk management program should prioritize activities that proactively identify and assess fraud risks over activities that detect fraud while it is occurring.

Answer: C

NEW QUESTION # 208
Which of the following is TRUE regarding the communication of the fraud risk assessment process?

A. The communication should be visibly disseminated throughout the business
B. All of the above
C. The more personalized the communication, the more effective it will be in encouraging employees to participate
D. The communication should be made in a format mat is most appropriate for the culture of the organization

Answer: B

Explanation:
* Communication of Fraud Risk Assessment Process:Effective communication ensures that employees understand the objectives and importance of the fraud risk assessment process. The following practices contribute to its success:
* A. Personalization: Personalized communication increases engagement by making the information relevant to employees' roles and responsibilities.
* B. Appropriateness to Culture: Aligning the communication format with the organization's culture ensures clarity and resonance.
* C. Visibility: Disseminating communication broadly reinforces its significance and encourages widespread participation.
* Why All Options are Correct:
* Fraud risk assessments require buy-in and participation across all levels of the organization.
Combining personalization, cultural alignment, and visibility creates an effective communication strategy.
* Conclusion:All three practices-personalization, cultural appropriateness, and visibility-are critical for effective communication.
References:Best practices for fraud risk communication as outlined in ACFE fraud risk management guides.

NEW QUESTION # 209
Which of the following is TRUE regarding government auditors' responsibilities to report evidence of potential fraud uncovered during an audit of a public-sector organization's financial statements?

A. Government auditors' reporting requirements pertaining to fraud are substantially the same as those for external auditors in the private sector.
B. All government auditors maintain the same requirements for reporting evidence of potential fraud uncovered during a public-sector financial statement audit.
C. Government auditors are legally prohibited from reporting evidence of potential fraud to any parties outside the organization being audited.
D. The requirements for government auditors to report evidence of potential fraud depend on the jurisdiction and the specific audit mandate.

Answer: D

NEW QUESTION # 210
Which of the following is FALSE regarding the discussion about the financial statements susceptibility to fraud that auditors are required to have under International Standard on Auditing (ISA) 240?

A. The audit team should focus solely on how the company's assets could be misappropriated
B. The audit team should consider factors that provide the opportunity for fraud.
C. The audit team should consider whether the organizational culture might enable the rationalization of fraud
D. A The audit team should discuss how management could conceal fraud

Answer: C

NEW QUESTION # 211
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