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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:
Section
Weight
Objectives
White-Collar Crime
15–20%
- Definition and characteristics
- Legal prosecution and sanctions
- Impact on organizations and society
- Causal factors and opportunity structures
- Organizational vs occupational crime
Corporate Governance
20–25%
- Governance frameworks and principles
1. OECD guidelines
2. Treadway Commission (COSO)
- Roles of board, management, auditors
- Internal control systems
During an external audit of an organization's financial statements, Saskia, the external auditor, uncoverssignificant internal control deficiencies at the organization. She believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Saskia do regarding these findings?
A. Saskia should provide a written communication about her findings to the relevant regulatory agencies.
B. Saskia should withdraw from the audit engagement immediately and issue a disclaimer on any prior work performed.
C. Saskia should suspend the current audit engagement and begin a new audit focused on the internal control deficiencies.
D. Saskia should communicate the deficiencies in writing to those charged with governance.
Answer: D
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Susannah Is conducting an external audit of a company In a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking her audit procedures, she discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Susannah's BEST response to these findings?
A. Susannah should confront management with her audit findings and try to get a confession.
B. Susannah should report her findings to the audit committee of the board of directors.
C. Susannah should Immediately report her findings to the secunties regulators
D. Susannah should not disclose her findings to any other parties due to client confidentiality.
Answer: B
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Which of the following mechanisms can help alleviate the pressure on employees to commit fraud?
A. Background check policies
B. Discipline policies
C. Employee support programs
D. Employee monitoring software
Answer: C
According to modern criminological studies, which of the following is the determinant aspect of white-collar crime?
A. Social class
B. Cultural ties
C. Criminal history
D. Organizational opportunity
Answer: D
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Jacques, an internal auditor, and Brenna, the company's travel and expense manager, have had several disagreements about employee expense limits and policies. Jacques has just been told that he will lead the company's fraud risk assessment. During the fraud risk assessment, Jacques should:
A. Request that someone else perform the fraud risk assessment work related to employee travel and expenses.
B. Confront Brenna about the disagreements and discuss how they increase the organization's risk of fraud.
C. Automatically designate the employee travel and expense function as a high-risk area.
D. Include his disagreements with Brenna as a factor when assessing the risk of fraud in the employee travel and expense function.
Answer: A
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