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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q209-Q214):

NEW QUESTION # 209
In Ihe context of fraud examination, integrity requires all of the following EXCEPT:

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

Answer: B

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.


NEW QUESTION # 210
Which of the following principles of corporate governance pertains to the duty of the organization to act in the best interest of society?

  • A. Accountability
  • B. Responsibility
  • C. Fairness
  • D. Transparency

Answer: B

Explanation:
Principle Overview:
* Responsibility pertains to the duty of an organization to act in the best interest of society, ensuring sustainable and ethical practices that benefit all stakeholders, including employees, customers, and the environment.
Corporate Governance Definition:
* Corporate governance frameworks emphasize corporate responsibility as a key pillar for maintaining societal trust and long-term value creation.
Why Responsibility is Correct:
* While transparency, fairness, and accountability are essential, responsibility uniquely emphasizes societal interests and ethical conduct.


NEW QUESTION # 211
Which of the following Is NOT a way that an organization's fraud risk assessment should be Incorporated Into the audit process?

  • A. it should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.
  • B. It should be used to assess whether there is a moderate-to-high risk of management overriding controls within the moderate-to-high fraud risk areas.
  • C. It should be used to replace the auditor's own identification and assessment of fraud risks.
  • D. It should be used to design audit tests to evaluate whether the controls are operating effectively.

Answer: C


NEW QUESTION # 212
The objectives of a fraud risk management program include:

  • A. Proactively identifying fraud risks
  • B. All of the above
  • C. Limiting the damage caused by fraud occurrences
  • D. Punishing fraud perpetrators

Answer: B

Explanation:
* Objectives of a Fraud Risk Management Program:
* A. Proactively identifying fraud risks: A fundamental goal is to identify and assess potential fraud risks to implement preventative measures.
* B. Limiting the damage caused by fraud occurrences: Programs should have mechanisms in place to detect and respond to fraud promptly to minimize harm.
* C. Punishing fraud perpetrators: Punishment serves as both a deterrent and a means of reinforcing the organization's commitment to ethical behavior.
* Comprehensive Objective Coverage:
* Effective fraud risk management includes preventative, detective, and corrective measures.
* Conclusion:All the listed objectives are essential components of a fraud risk management program.
References:ACFE guidelines on designing and implementing fraud risk management programs.


NEW QUESTION # 213
Which principle of corporate governance pertains to the disclosure of all material matters that the shareholders need to make timely and informed decisions regarding their investment in the company?

  • A. Accountability
  • B. Fairness
  • C. Transparency
  • D. Responsibility

Answer: C

Explanation:
* Corporate Governance Principles:
* Transparency refers to disclosing material matters, enabling shareholders to make informed decisions.
* This includes providing timely and accurate information about the company's financial performance, risks, and governance practices.
* Analysis of Other Options:
* B. Fairness: Involves equitable treatment of all shareholders.
* C. Responsibility: Focuses on fulfilling legal and ethical obligations.
* D. Accountability: Pertains to holding the board and management responsible for their actions.
* Conclusion:Transparency ensures shareholders have the necessary information for decision-making.
References:Corporate governance best practices and G20/OECD Principles of Corporate Governance.


NEW QUESTION # 214
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