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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q237-Q242):

NEW QUESTION # 237
Professional auditing standards require that auditors incorporate an "element of unpredictability" in the selection of auditing procedures to be performed.

A. True
B. False

Answer: A

Explanation:
Professional Auditing Standards Requirement:
* Standards such as the International Standards on Auditing (ISA) and Generally Accepted Auditing Standards (GAAS) require auditors to include elements of unpredictability in their audit procedures to reduce the risk of fraud.
Purpose of Unpredictability:
* By varying the scope, timing, and extent of audits, auditors prevent potential fraudsters from anticipating audit procedures and adjusting their behavior.
Why A is Correct:
* This aligns with established auditing principles to enhance fraud detection and maintain audit integrity.

NEW QUESTION # 238
Jones, an accounting manager for a software company, wants to improve her team's adherence to the company's formal accounting policies and procedures and reduce the number of process exceptions they experience. According to behaviorist theories, which of the following options would be the most effective way for Jones to condition her staff to follow the company's formal accounting processes?

A. Take away a day of paid time off for each process exception.
B. Publicly call out and criticize employees who deviate from the formal processes.
C. Offer a bonus to anyone who experiences no process exceptions for ninety days-
D. Demote employees who do not adhere to the expected processes.

Answer: C

NEW QUESTION # 239
Aqua Corp.'s board of directors is meeting to discuss fraud risk management within the organization. Which of the following activities is among the board of directors' primary responsibilities related to fraud risk management for the company?

A. Overseeing the organization's fraud risk management activities.
B. Performing and regularly updating the fraud risk assessment.
C. Monitoring and proactively improving the fraud risk management program.
D. Implementing the fraud risk management program throughout the organization.

Answer: A

NEW QUESTION # 240
Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To most effectively reinforce an anti-fraud culture, management should:

A. Create an environment in which employees feel safe challenging management's decisions
B. Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
C. implement two separate sets of ethics policies, one for management and one for employees
D. All of the above

Answer: A

Explanation:
* Reinforcing an Anti-Fraud Culture:A strong ethical tone at the top is crucial to reducing fraud risk.
Employees must feel empowered to report concerns without fear of retaliation.
* Analysis of Options:
* A. Using a checklist: While useful, it is not sufficient alone to instill an anti-fraud culture.
* C. Separate ethics policies: A unified ethical standard for all employees fosters trust and consistency.
* B. Safe environment for challenges: This is the most effective method as it promotes transparency, accountability, and whistleblowing.
* Conclusion:Creating a safe and open environment for employees to challenge management's decisions is the most impactful action.
References:ACFE's guidelines on ethical culture and fraud prevention.

NEW QUESTION # 241
Devon, an employee at Tilly Corp., repeatedly demonstrates a negative attitude when working with other departments. To address this behavior, Devon's manager tells him that he is no longer allowed to lead cross-departmental projects. This is an example of what type of behavioral response?

A. Punishment
B. None of the above
C. Positive reinforcement
D. Negative reinforcement

Answer: A

Explanation:
This scenario is an example of punishment. Punishment involves introducing a consequence (in this case, the loss of responsibility for cross-departmental projects) to discourage undesirable behavior. The manager uses this approach to address Devon's negative attitude and to promote better cooperation with other departments in the future.

NEW QUESTION # 242
......

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High Pass-Rate CFE-Fraud-Prevention-and-Deterrence - Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Exams

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q237-Q242):

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