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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 for professionals who want to specialize in fraud prevention and deterrence. CFE-Fraud-Prevention-and-Deterrence Exam covers topics such as fraud risk assessment, fraud prevention, and fraud detection.

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q232-Q237):

NEW QUESTION # 232
Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Smith to encourage his team members to keep their cash drawers in balance?

A. Take away an hour of paid time off for each time the drawer is over or short
B. Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.
C. Demote employees who continue to have reconciliation discrepancies
D. Publicly call out and criticize employees whose cash drawers are over or short.

Answer: B

Explanation:
* Behaviorist Theories on Reinforcement:
* Positive reinforcement is the most effective way to encourage desired behavior by providing rewards for compliance.
* Analysis of Options:
* B. Public criticism: May create resentment and decrease morale.
* C. Loss of paid time off: A punitive measure that may not motivate improvement.
* D. Demotion: Effective for extreme cases but harsh and potentially counterproductive for minor errors.
* Conclusion:Offering a bonus for perfect reconciliation aligns with behaviorist principles of positive reinforcement.
References:ACFE behavioral insights and fraud prevention strategies.

NEW QUESTION # 233
According to the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control- Integrated Framework (the Framework), there are five interrelated components of a company's internal control. Which of the following is NOT among these five components?

A. Ethical culture
B. Risk assessment
C. Monitoring
D. Control activities

Answer: A

Explanation:
* Five Components of COSO's Internal Control Framework:
* A. Control activities: Policies and procedures to ensure objectives are met.
* C. Risk assessment: Identifying and analyzing risks.
* D. Monitoring: Ongoing evaluation of control effectiveness.
* Control environment: Includes the tone at the top and organizational ethics.
* Information and communication: Facilitates the flow of relevant information.
* Explanation of Ethical Culture:
* While ethical culture is critical to the control environment, it is not one of the five standalone components of the framework.
* Conclusion:Ethical culture is not a separate component but a part of the control environment.
References:COSO Internal Control-Integrated Framework documentation.

NEW QUESTION # 234
Which of the following is NOT a purpose served by a professional organization s code of conduct?

A. It serves as a reference and benchmark for ethical guidance
B. It provides clear answers to all ethical dilemmas the organization s members might face
C. It facilitates practical enforcement and profession-wide internal discipline
D. It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles

Answer: A

NEW QUESTION # 235
During an external audit, the audit team identifies evidence that management has intentionally omitted some expenses from the company's financial statements in order to conceal an asset misappropriation scheme.
However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

A. The auditors should assess the need to adjust the nature, timing, and extent of remaining audit procedures based on this evidence.
B. The auditors do not need to be concerned with this evidence, as asset misappropriation schemes are not considered relevant or material for external audit purposes.
C. The auditors can ignore the misstatement because the omitted amount is less than the quantitative materiality threshold and therefore immaterial to the audit.
D. The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement

Answer: A

Explanation:
Responsibility of Auditors:
* Under International Standards on Auditing (ISA) 240, auditors are required to investigate any indications of fraud, regardless of the materiality of the misstatement.
* Evidence of intentional misstatements indicates the potential for broader fraudulent activity, necessitating a reassessment of audit procedures.
Importance of Fraud Indicators:
* Even if the misstatement does not exceed the materiality threshold, it represents a significant risk factor that could compromise the reliability of the financial statements.
Why B is Correct:
* Adjusting audit procedures ensures that the audit team addresses the broader implications of the fraud risk while maintaining professional skepticism and compliance with auditing standards.

NEW QUESTION # 236
According to the results of behavioral studies, such as those conducted by B. F. Skinner, application of punishment to undesired behavior typically results in which of the following?

A. Permanent suppression of the undesired behavior
B. increase in the occurrence of the undesired behavior
C. Temporary suppression of the undesired behavior
D. No effect on the occurrence of the undesired behavior

Answer: C

NEW QUESTION # 237
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