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| Section | Weight | Objectives |
|---|---|---|
| Fraud Risk Assessment | 15–20% | - Risk analysis and prioritization - Assessment implementation and documentation - Risk identification methodologies |
| White-Collar Crime | 15–20% | - Impact on organizations and society - Legal prosecution and sanctions - Causal factors and opportunity structures - Organizational vs occupational crime - Definition and characteristics |
| Professional Ethics | 5–10% | - Conflicts of interest and integrity - ACFE Code of Professional Ethics - Ethical decision-making |
| Understanding Criminal Behavior | 5–10% | - Behavior modification principles - Theories of crime causation
|
| Corporate Governance | 20–25% | - Internal control systems
|
| Management's Fraud-Related Responsibilities | 5–10% | - Reporting mechanisms - Establishing anti-fraud policies - Oversight and accountability |
| Fraud Prevention Programs | 15–20% | - Communication and training - Monitoring and continuous improvement - Designing prevention strategies |
Question 1
Which of the following is a responsibility of an organization's board of directors?
A. Serving as the intermediary between staff-level employees and management.
B. Assessing the strategy and underlying purpose of management's decisions and actions.
C. Directing employees to organize and execute business activities.
D. Electing the company shareholders and supervising their decisions and actions.
Question 2
Reputational damage is an indirect cost of fraud that can be difficult for organizations to calculate.
A. False
B. True
Question 3
Which of the following scenarios is LEAST LIKELY to be considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics?
A. Karen accepts an assignment to search for fraud indicators at an organization in which she is an undisclosed partner.
B. DeVon undertakes engagements for both sides in a case of an alleged fraudulent warranty scheme.
C. Lori accepts an assignment to infiltrate her employer and transmit inside information to a competitor.
D. Ren undertakes an external engagement that requires him to work outside the normal work hours of his primary employer.
Question 4
An executive pressures accounting staff to accelerate revenue recognition near year-end to meet earnings targets. This situation primarily reflects which element of the Fraud Triangle?
A. Collusion
B. Pressure
C. Rationalization
D. Opportunity
Question 5
Consistently punishing perpetrators can be an effective fraud prevention mechanism
A. False
B. True
Solutions:
| Question 1 Answer: B | Question 2 Answer: B | Question 3 Answer: D | Question 4 Answer: B | Question 5 Answer: B |
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