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ACFE CFE-Fraud-Prevention-and-Deterrence Exam is an essential certification program for individuals seeking to enhance their skills and knowledge in the area of fraud prevention and deterrence. Certified Fraud Examiner - Fraud Prevention and Deterrence Exam certification program is designed to provide individuals with practical skills and knowledge that they can apply in their organizations to effectively prevent and detect fraudulent activities. The rigorous certification process ensures that individuals who earn the certification have met the required eligibility requirements and have the necessary skills and knowledge to excel in their careers.

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ACFE CFE-Fraud-Prevention-and-Deterrence Certification Exam is designed for professionals who want to specialize in fraud prevention and deterrence. It is a globally recognized certification program that provides candidates with the skills and knowledge to prevent, detect, and investigate fraud. CFE-Fraud-Prevention-and-Deterrence Exam covers a variety of topics, including fraud prevention and deterrence strategies, fraud risk assessment, fraud investigation techniques, and legal and ethical issues related to fraud.

ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q161-Q166):

NEW QUESTION # 161
Which of the following criminological theories states that individuals make a conscious decision to commit a crime and that crime can be deterred by reducing opportunities for criminal activity and increasing an individual's personal risk of being caught and punished?

A. Rational choice theory
B. Differential association theory
C. Routine activities theory
D. Social conflict theory

Answer: A

Explanation:
* Rational Choice Theory Overview:
* This theory posits that individuals consciously weigh the benefits and risks of committing a crime and make calculated decisions to engage in criminal behavior if the perceived benefits outweigh the risks.
* Deterrence Mechanism:
* Crime can be deterred by reducing opportunities (e.g., strong internal controls) and increasing the likelihood of detection and punishment (e.g., effective monitoring systems).
* Why Other Options are Incorrect:
* A. Routine activities theory: Focuses on the convergence of motivated offenders, suitable targets, and lack of guardianship.
* B. Differential association theory: Explains crime as learned behavior through interaction with others.
* D. Social conflict theory: Suggests crime results from societal inequalities and power struggles.
* Why C is Correct:
* Rational choice theory explicitly addresses crime prevention through increased risks and reduced opportunities.
References for All Questions:
* ACFE Fraud Examination Guide.
* Criminological theories as applied to fraud prevention and deterrence.
* Corporate governance frameworks and corruption-related risks.

NEW QUESTION # 162
International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the establishment of anti-fraud internal controls within an organization.

A. True
B. False

Answer: B

NEW QUESTION # 163
For Its compliance program to be effective, an organization must perform procedures to ensure management hires only ethical Individuals who exercise a substantial measure of discretion In acting on the organization's behalf

A. False
B. True

Answer: B

Explanation:
* Importance of Hiring Ethical Individuals:
* Ethical hiring practices are foundational to an effective compliance program. Employees with a high measure of discretion can significantly impact organizational behavior and risk.
* Pre-hiring background checks, ethical screening, and thorough interviews help mitigate the risk of unethical behavior.
* Conclusion:For a compliance program to be effective, management must ensure ethical hiring practices.
References:ACFE materials on compliance programs and employee screening.

NEW QUESTION # 164
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 # 165
Which of the following factors is the determining aspect of white-collar crime according to modern criminological studies?

A. Social status
B. Educational background
C. Psychological temperament
D. Organizational opportunity

Answer: D

NEW QUESTION # 166
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