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The Certified Fraud Examiner - Fraud Prevention and Deterrence (CFE-Fraud-Prevention-and-Deterrence) Exam is a certification offered by the Association of Certified Fraud Examiners (ACFE). Certified Fraud Examiner - Fraud Prevention and Deterrence Exam certification is designed to equip professionals with the skills and knowledge required to effectively prevent, detect, and deter fraudulent activities within an organization. The CFE-Fraud-Prevention-and-Deterrence Exam is recognized globally and is highly valued by employers looking for professionals with a deep understanding of fraud prevention and detection.

ACFE CFE-Fraud-Prevention-and-Deterrence Exam is a globally recognized certification that is highly valued by employers in various industries. Professionals who earn this certification have demonstrated their expertise in fraud prevention and deterrence, which is a critical skill set in today's business environment. The CFE-Fraud-Prevention-and-Deterrence Exam is also an excellent way for professionals to advance their careers and increase their earning potential.

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

NEW QUESTION # 161
Stevens, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination at ABC Company. His examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently, ABC's management asked Stevens to state in his official examination report that the organization is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective.
Under the ACFE Code of Professional Ethics. Stevens is permitted to comply with management's request based on the findings of his examination.

A. True
B. False

Answer: B

Explanation:
ACFE Code of Professional Ethics:
* The ACFE Code of Ethics prohibits fraud examiners from making absolute statements about the absence of fraud. Fraud cannot be definitively ruled out based on an examination's findings.
Why B is Correct:
* Stevens cannot state that the organization is "free of fraud," as fraud detection is inherently limited by the scope and methods of the examination. Such a statement could mislead stakeholders and compromise ethical standards.

NEW QUESTION # 162
Which of the following is NOT one of the three general approaches used to control corporate crime?

A. Strong intervention of the government
B. Media blacklisting of the organization
C. Consumer action to force change
D. Voluntary changes in corporate attitudes and structure

Answer: B

Explanation:
* Three General Approaches to Controlling Corporate Crime:
* Government Intervention: Strong regulations and enforcement to ensure accountability.
* Voluntary Corporate Changes: Encouraging ethical practices through organizational policies.
* Consumer Action: Pressure from consumers demanding corporate responsibility.
* Why D is Incorrect:
* Media blacklisting is not a formal or systematic approach to controlling corporate crime. It is a consequence rather than a preventive or corrective measure.
* References:
* ACFE and corporate governance frameworks emphasize formal mechanisms like government intervention and organizational self-regulation.

NEW QUESTION # 163
Which of the following is NOT one of the three elements that have the most influence on crime according to the routine activities theory?

A. The absence of capable guardians
B. The lack of societal ethics
C. The presence of motivated offenders
D. The availability of suitable targets

Answer: B

Explanation:
Routine activities theory holds that crime occurs when three elements converge: (1) a motivated offender, (2) a suitable target, and (3) the absence of a capable guardian. "The lack of societal ethics" is not part of this theoretical model.
Reference:ACFE Fraud Examiners Manual, 2020 International Edition -Fraud Prevention and Deterrence, Section 4.118.

NEW QUESTION # 164
Which of the following choices is an example of an anti-fraud control that is primarily detective in nature?

A. Separation of employee duties
B. Continuous audit techniques
C. Employee background checks
D. Hiring policies and procedures

Answer: B

Explanation:
Detective controls are designed to identify fraud or errors that have already occurred. Continuous audit techniques serve as a detective control by automatically monitoring transactions and flagging anomalies or irregularities for further investigation. On the other hand, preventive controls such as separation of duties, background checks, and hiring policies aim to stop fraud before it happens.

NEW QUESTION # 165
In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss This response is known as:

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

Answer: D

NEW QUESTION # 166
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