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CFE Exam Fraud Prevention And Deterrence With Correct Questions And Answers 2024
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CFE Exam Fraud Prevention And Deterrence With Correct Questions And Answers 2024
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CFE Exam Fraud Prevention AndDeterrence With Correct Questions And
Answers 2024
White-Collar rCrime r- rcorrect ranswer.More roften rthan rprison, rthe rpunishment rof rchoice
rfor rwhite-collar rcriminals ris rthe rimposition rof rfines. rWhereas r6% rof rthe r"common
rcriminals" rin rone rnotable rsurvey rreceived rfines, rall rof rthe rantitrust rviolators rreceived
rfines.
Of rall rfactors, rorganizational ropportunity rremains rthe rdeterminant raspect rof rwhite-collar
rcrime. rResearch rshows rthat ra rcriminal's rposition rin ran rorganization rand rhis rability rto
rorganize rthe rscheme rhave rfar rmore rbearing ron rthe rcrime rthan rsocial rstatus ror rclass
ralone.
Corporate rCrime rControl r- rcorrect ranswer.Efforts rto rcontrol rcorporate rcrime rfollow rthree
rapproaches: rvoluntary rchange rin rcorporate rattitudes rand rstructure; rstrong rintervention
rby rthe rgovernment rto rforce rchanges rin rcorporate rstructure, raccompanied rby rlegal
rmeasures rto rdeter ror rpunish; ror rconsumer raction. rVoluntary rchanges rwould rinvolve rthe
rdevelopment rof rstronger rbusiness rethics rand rcertain rcorporate rorganizational rreforms.
rGovernment rcontrols rmight rinvolve rcorporate rchartering, rdeconcentration rand
rdivestiture, rlarger rand rmore reffective renforcement rstaffs, rstiffer rpenalties, rwider ruse rof
rpublicity ras ra rsanction, rand rpossibly rthe rnationalization rof rcorporations. rConsumer
rgroup rpressures rmight rbe rexerted rthrough rlobbying, rselective rbuying, rboycotts, rand rthe
restablishment rof rlarge rconsumer rcooperatives.
Who ris rresponsible rfor rthe roversight rof rthe rorganization's rfinancial, raccounting, rand raudit
rmatters? r- rcorrect ranswer.AC r- rAs ra rsub-group rof rthe rboard rof rdirectors, rthe raudit
rcommittee ris roften rdelegated roversight rof rthe rorganization's rfinancial, raccounting, rand
raudit rmatters rand rreports rto rthe rfull rboard. rAs rpart rof rthis rresponsibility, rthe rcommittee
rmust rtake ran ractive rrole rin roverseeing rthe rassessment rand rmonitoring rof rthe
rorganization's rfraud rrisks. rThis rinvolves:
• rReceiving rregular rreports ron rthe rstatus rof rreported ror ralleged rfraud
• rBeing raware rof rfraud rrisks rthat rare rcommon rin rthe rorganization's rindustry
, • rMeeting rregularly rwith rkey rinternal rparties r(e.g., rthe rchief raudit rexecutive ror rother rsenior
rfinancial rpersons) rto rdiscuss ridentified rfraud rrisks rand rthe rsteps rbeing rtaken rto rprevent
rand rdetect rfraud
• rUnderstanding rhow rinternal rand rexternal raudit rstrategies raddress rfraud rrisk
• rProviding rexternal rauditors rwith revidence rthat rthe raudit rcommittee ris rdedicated rto
reffective rfraud rrisk rmanagement
• rEngaging rin ropen rconversations rwith rexternal rauditors rabout rany rknown ror rsuspected
rfraud
• rSeeking radvice rof rlegal rcounsel rwhenever rit rdeals rwith rallegations rof rfraud
Audit rCommittee r- rcorrect ranswer.Under rthe rrestrictions rimposed rby rthe rSarbanes-Oxley
rAct, rall raudit rcommittee rmembers rmust rbe rmembers rof rthe rboard rof rdirectors rand rmust
rbe r"independent," rmeaning rthey rreceive rcompensation ronly rfor rtheir rservice ron rthe
rboard. rThey rcannot rbe rpaid rby rthe rcompany, ror rany rof rits rsubsidiaries, rfor rany rother
rconsulting ror radvisory rwork, rincluding rindirect rpayments rmade rby rthe rcompany rto ra
rparty rrelated rto rthe rcommittee rmember.
Professional rFields r- rcorrect ranswer.The rfive rprincipal rcharacteristics rthat rhelp
rdifferentiate rprofessional rfields rfrom rother rvocations rare:
• rA rbody rof rspecialized rknowledge racquired rthrough rformal reducation
• rAdmission rto rthe rprofession rgoverned rby rstandards rof rprofessional rqualifications
• rRecognition rand racceptance rby rsociety rof rprofessional rstatus, rand rconcurrent
rrecognition rand racceptance rof rsocial rresponsibility rby rthe rprofessional
• rStandards rof rconduct rgoverning rrelationships rof rthe rprofessional rwith rclients,
rcolleagues, rand rthe rpublic
• rAn rorganization rdevoted rto rthe radvancement rof rthe robligations rof rthe rprofessional
rgroup
Social rStructure rand rCorporate rMisconduct r- rcorrect ranswer.Diane rVaughan, rthe rauthor
rof rControlling rUnlawful rOrganizational rBehavior: rSocial rStructure rand rCorporate
rMisconduct, rbelieves rthat rorganizations rcan rbe rcriminogenic rbecause rthey rencourage
rloyalty. rThis, rin rturn, rcauses rcompany rpersonnel rto rsometimes rperceive rthat rthe
rorganization rmight rbe rworth rcommitting rcrime rfor rto rmaintain rand rfurther rits rgoals. rThe
ruse rof rformal rand rinformal rrewards rand rpunishments, rplus rsocial ractivities rand
rpressures rto rparticipate, rlink ran remployee's rneeds rand rgoals rto rthe rcompany's rsuccess.
rWhen ra rcompany rachieves rits rgoals, rits remployees rprosper. rIn rshort, rthe rinterests rof ran
rorganization rand rits remployees rcoincide, rand rthat rsituation rmight rset rthe rstage rfor
runlawful rconduct rby rindividuals ron rthe rorganization's rbehalf.
PCAOB rAS r2201 r- rcorrect ranswer.In rMay r2007, rthe rPCAOB radopted rAS r2201, rAn rAudit
rof rInternal rControl rOver rFinancial rReporting rThat rIs rIntegrated rwith rAn rAudit rof rFinancial
rStatements, ras ra rreplacement rto rAuditing rStandard rNo. r2, rthe rprevious rstandard
rgoverning raudits rof rinternal rcontrols rover rfinancial rreporting r(ICOFR) ras rmandated rby
rthe rSarbanes-Oxley rAct. rAS r2201 rlays rout rthe rrequirements rand rprovides rguidance rfor
rauditors rwho rare rengaged rto rperform ran raudit rof ran rentity's rinternal rcontrols rover
rfinancial rreporting rthat ris rintegrated rwith ran raudit rof rthe rfinancial rstatements.
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