ACFE CFE-Fraud-Prevention-and-Deterrence Exam Dumps - Valid Questions Answers

Communication of Fraud Risk Assessment Process:Effective communication ensures that employees understand the objectives and importance of the fraud risk assessment process. The following practices contribute to its success:

A. Personalization: Personalized communication increases engagement by making the information relevant to employees' roles and responsibilities.

B. Appropriateness to Culture: Aligning the communication format with the organization's culture ensures clarity and resonance.

C. Visibility: Disseminating communication broadly reinforces its significance and encourages widespread participation.

Why All Options are Correct:

Fraud risk assessments require buy-in and participation across all levels of the organization. Combining personalization, cultural alignment, and visibility creates an effective communication strategy.

Conclusion:All three practices—personalization, cultural appropriateness, and visibility—are critical for effective communication.

References:Best practices for fraud risk communication as outlined in ACFE fraud risk management guides​​.

Proactive Fraud Auditing Procedures:

Analytical reviews are effective for identifying large or unusual trends and anomalies, not necessarily small frauds.

Other tools, such as detailed transaction testing, are better suited for uncovering small frauds.

Analysis of Other Options:

A. Element of surprise: A key feature of fraud audits.

C. Fraud assessment questioning: Valid as part of the audit process.

D. Management’s intentions: Proactive procedures signal a strong stance against fraud.

Conclusion:Option B is false because analytical reviews are better at detecting significant anomalies rather than small frauds.

References:ACFE materials on fraud auditing techniques​​.

Modern Criminological Studies on White-Collar Crime:Studies highlight that white-collar crimes are often influenced by situational factors rather than inherent criminal traits. The availability of organizational opportunities to commit fraud plays a crucial role.

Analysis of Options:

A. Cultural ties: Less significant in white-collar crime.

B. Criminal history: White-collar criminals often have no prior criminal records.

D. Social class: While white-collar crime is associated with higher social classes, the determinant factor is the opportunity presented within an organization.

C. Organizational opportunity: This aligns with the fraud triangle concept, where opportunity is a primary driver.

Conclusion:Organizational opportunity is the determinant aspect of white-collar crime.

References:ACFE study materials and modern criminology texts on white-collar crime​​.