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The CFE-Fraud-Prevention-and-Deterrence Certification Exam is considered one of the most challenging examinations, requiring candidates to demonstrate a thorough understanding of fraud prevention and detection concepts, techniques, and procedures. CFE-Fraud-Prevention-and-Deterrence exam consists of four sections: Fraud Prevention and Deterrence, Financial Transactions and Fraud Schemes, Investigation, and Law. Each section covers critical topics such as fraud risk assessment, internal controls, financial statement fraud, interview techniques, and legal considerations.

To become a CFE, individuals must pass all four sections of the exam and meet certain experience and education requirements. The Fraud Prevention and Deterrence section of the exam is critical to the overall success of the anti-fraud professional, as it provides the foundation for developing and implementing effective fraud prevention programs.

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q241-Q246):

NEW QUESTION # 241
According to Diane Vaughan. which of the following factors increases an organization's inherent inclination toward committing crime?

A. Management separates employee performance goals from company performance goals
B. Management encourages employee loyalty through social functions
C. Rewards are given to employees who challenge the status quo
D. All of the above

Answer: A

Explanation:
Diane Vaughan's Theory on Organizational Crime:
* Vaughan argued that organizational environments prone to crime exhibit a "normalization of deviance," often influenced by management decisions that misalign employee incentives with organizational objectives.
Why C is Correct:
* Misaligned goals create conflicting priorities, increasing the likelihood of unethical behavior to meet individual or team objectives.
Why Other Options are Incorrect:
* A: Challenging the status quo promotes innovation and ethical accountability.
* B: Social functions fostering loyalty do not inherently encourage crime.

NEW QUESTION # 242
Which of the following is among the board of directors' primary responsibilities related to fraud risk management?

A. Implementing the fraud risk management program
B. Overseeing the organization's fraud risk management activities
C. Designing the fraud risk management program
D. Punishing fraud perpetrators discovered through fraud risk management activities

Answer: B

NEW QUESTION # 243
Which of the following statements regarding recommended vendor due diligence procedures is MOST ACCURATE?

A. An organization should avoid revealing that it is seeking information about potential vendors prior to starting its relationship with them.
B. An organization should ensure that vendors have their own ethics and compliance program before engaging in any transactions with them.
C. An organization should perform audits of potential vendors before agreeing to conduct business with them.
D. An organization should request that new vendors complete a questionnaire about their background immediately after signing a contract with them.

Answer: B

Explanation:
Comprehensive and Detailed in Depth Explanation:
A key element of vendor due diligence is ensuring that third-party vendors have robust ethics and compliance programs. This helps align values, mitigate fraud risks, and establish clear expectations. While audits and questionnaires are good practices, they are not always mandatory or feasible before engagement. Moreover, transparency in seeking vendor information (unlike in A) is a norm in legitimate vetting practices.
Reference:Fraud Examiners Manual, 2022, Fraud Prevention and Deterrence, Managing Third-Party Fraud Risks - Section 4.809.

NEW QUESTION # 244
Which of the following Is TRUE regarding an organization's ethics program?

A. An effective written ethics policy alone is sufficient to communicate management's ethical philosophy and serve as a comprehensive ethics program
B. In designing the ethics program, management should consider whether the organization currently has any ethical leadership Issues
C. To be most effective, access to the organization's ethics policy should be restricted to employees and other Internal parties only
D. All of the above

Answer: B

NEW QUESTION # 245
Which of the following is TRUE regarding proactive fraud auditing procedures?

A. Surprise audit procedures are an effective fraud detection mechanism, but they do not help prevent fraud
B. Fraud assessment Questioning techniques are most appropriately used when attempting to determine who might be responsible for a particular fraud scheme.
C. Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods.
D. Implementing proactive fraud audit procedures demonstrates the organization's intention to aggressively look for possible fraudulent conduct.

Answer: A

NEW QUESTION # 246
......

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Hot Valid CFE-Fraud-Prevention-and-Deterrence Test Pass4sure Free PDF | Professional CFE-Fraud-Prevention-and-Deterrence Exam Sims: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam

2025 CFE-Fraud-Prevention-and-Deterrence – 100% Free Valid Test Pass4sure | Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Exam Sims

ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q241-Q246):

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