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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q62-Q67):
NEW QUESTION # 62
_____________Is the criminological theory that presents crime as a conscious decision that can be deterred by reducing opportunities for criminal activity and increasing the personal risk to an Individual of being caught and punished.
- A. Routine activities theory
- B. Differential association theory
- C. Justification of action theory
- D. Rational choice theory
Answer: D
Explanation:
* Rational Choice Theory Overview:
* This theory asserts that individuals make conscious decisions to commit crimes after weighing the costs (risk of detection and punishment) and benefits.
* Why D is Correct:
* Rational choice theory aligns with strategies to deter crime by reducing opportunities and increasing personal risks.
* Why Other Options are Incorrect:
* A (Differential association theory): Explains crime as learned behavior.
* B (Routine activities theory): Focuses on environmental factors.
* C (Justification of action theory): Not a recognized criminological theory.
References for All Questions:
* ACFE Code of Professional Ethics and Fraud Examination Guide.
* Criminological theories and governance frameworks in fraud prevention.
* Case studies on indirect fraud costs and ethical decision-making.
NEW QUESTION # 63
Gray, an independent Certified Fraud Examiner (CFE), was hired by Green, president of the ABC Corporation, to investigate allegations that one of ABC's employees is taking kickbacks. During the investigation. Gray teams that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:
- A. Resign from the engagement
- B. Not disclose the information about Green.
- C. Report Green to law enforcement
- D. Tell the company's board of directors about Green.
Answer: D
Explanation:
Professional Responsibility Under ACFE Code of Ethics:The ACFE Code of Professional Ethics requires Certified Fraud Examiners (CFEs) to disclose material information to the proper authorities. When fraud is discovered, the CFE must act in the best interest of the organization while adhering to ethical standards.
* In this scenario, Gray must report Green's involvement in unrelated fraud to ABC Corporation's board of directors. This ensures transparency and accountability without breaching client confidentiality unnecessarily.
Relevant Principles from ACFE Code of Ethics:
* Integrity: CFEs must act honestly and report findings to the appropriate parties.
* Objectivity: The CFE must avoid conflicts of interest and ensure impartiality in all findings and disclosures.
Board Reporting Responsibility:
* Reporting to the board is appropriate because they are responsible for corporate governance and oversight. Law enforcement involvement should follow organizational protocols unless laws explicitly mandate direct reporting.
NEW QUESTION # 64
Julia is conducting a formal assessment of XYZ Corporation s ethical culture To which of the five components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control-Integrated Framework (the Framework) does her assessment pertain?
- A. Control activities
- B. Monitoring
- C. Control environment
- D. Information and communication
Answer: C
NEW QUESTION # 65
According to Silk and Vogel's research, which of the following is one of the ways that businesses rationalize illegal conduct?
- A. Government regulation is unnecessary because the matters being regulated are unimportant.
- B. Violations are caused by innocent errors in judgment rather than economic necessity.
- C. Government regulations are justified because the additional costs of regulations and bureaucratic procedures increase government profits.
- D. Corporate violations that involve large sums of money are often spread among so many organizations that each gains very little individually.
Answer: D
Explanation:
Comprehensive and Detailed in Depth Explanation:
Silk and Vogel's research found that organizations often rationalize unethical or illegal behavior by diffusing responsibility across a group, thus minimizing perceived individual culpability. This "shared guilt" justification is reflected in option D. The other options either misunderstand the research or do not reflect actual rationalizations used in white-collar crime contexts.
NEW QUESTION # 66
Jenny is a highly respected employee at XYZ Corp. Her husband's gambling addiction has caused them to have a significant amount of debt. Jenny begins stealing money from the company to cover her husband's gambling losses. This situation best illustrates which leg of the Fraud Triangle?
- A. Rationalization
- B. Perceived non-shareable financial need
- C. Perceived opportunity
- D. Perceived acquiescence
Answer: A
NEW QUESTION # 67
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