PDFTorrent ACFE CFE-Fraud-Prevention Exam Questions Formats

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q170-Q175):

NEW QUESTION # 170
Which of the following statements regarding recommended vendor due diligence procedures is MOST ACCURATE?

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

Answer: A

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.

NEW QUESTION # 171
Josie is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While conducting her audit procedures, she discovers evidence that Carissa, the company's chief financial officer, has been fraudulently manipulating the financial statements. Which of the following is Josie's BEST response to these findings?

A. Josie should confront Carissa with her audit findings and try to get a confession.
B. Josie should not disclose her findings to anyone until after she has conducted a full investigation.
C. Josie should report her findings to those charged with governance of the organization.
D. Josie should immediately report her findings to the local media.

Answer: C

Explanation:
According to the ISAs, auditors are required to communicate identified instances of fraud to those charged with governance of the organization. This ensures that the appropriate individuals within the organization are informed and can take necessary corrective actions. Reportingfindings to the media or confronting individuals directly is not considered an appropriate course of action.

NEW QUESTION # 172
Timothy, a new Certified Fraud Examiner (CFE), has been tasked with his first fraud examination engagement. To exercise appropriate professional skepticism as he conducts the engagement, Timothy should:

A. Form the engagement hypothesis without consideration for the nature of the assignment.
B. Begin the engagement with the belief that no fraud has occurred.
C. Maintain professional skepticism that can only be dispelled by evidence.
D. Maintain a skeptical attitude throughout the entire engagement even if the evidence shows no signs of fraudulent activity.

Answer: D

NEW QUESTION # 173
According to ACFE research, which of the following is TRUE?

A. Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.
B. Complaints about family problems is the most reported behavioral red flag displayed by fraud perpetrators.
C. Most employees who commit occupational fraud are first-time offenders.
D. Men and women commit similar amounts of occupational frauds.

Answer: C

Explanation:
The ACFE research consistently finds that the majority of occupational fraudsters are first-time offenders. Specifically, "85% of occupational fraud perpetrators had never been punished or terminated for fraud-related conduct prior to the crimes in this study."

NEW QUESTION # 174
An employee who previously received excellent performance evaluations suddenly begins living far beyond known financial means. What should management consider?

A. The behavior is irrelevant to fraud risk
B. The behavior may represent a fraud red flag requiring further attention
C. The employee should be terminated immediately
D. The behavior proves fraud has occurred

Answer: B

Explanation:
Living beyond one's means is a common behavioral red flag associated with occupational fraud.
Although it does not prove wrongdoing, it may warrant additional scrutiny when combined with other risk indicators.

NEW QUESTION # 175
......

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PDFTorrent ACFE CFE-Fraud-Prevention Exam Questions Formats

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Pass Guaranteed 2026 ACFE CFE-Fraud-Prevention: Marvelous Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Latest Practice Questions

ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q170-Q175):

Free PDF Quiz ACFE - CFE-Fraud-Prevention - Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Fantastic Latest Practice Questions

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