ACFE CFE-Fraud-Prevention-and-Deterrence Exam Dumps

The ACFE has found that terminating the employee involved in fraud is the most common internal response to substantiated cases. While many fraud cases are handled internally without being referred to law enforcement, this is often due to concerns such as reputational damage or cost considerations rather than a lack of evidence.

Impartiality in Fraud Risk Assessment:

As the lead on the fraud risk assessment, Glenda must maintain objectivity and avoid the appearance of bias.

Her history of disagreements with Bridgette creates a potential conflict of interest, which could compromise the assessment's credibility.

Why Option D is Correct:

Assigning the accounts receivable department's assessment to another individual eliminates the risk of perceived or actual bias.

Analysis of Other Options:

A . Confrontation:Not appropriate during a professional assessment.

B . Including disagreements:Personal conflicts should not influence risk evaluations.

C . Automatic high-risk designation:This lacks a factual basis and undermines objectivity.

Conclusion:Option D ensures objectivity and credibility in the fraud risk assessment.

Privilege of Fraud Examination Reports:

Reports prepared by fraud examiners are not inherently privileged. Privilege depends on the legal framework, the purpose of the report, and whether the attorney-client privilege or work-product doctrine applies.

Without specific legal protection, reports may be subject to disclosure.

Conclusion:Fraud examination reports are not automatically privileged.

Hierarchy of Ethical Guidance Sources:

A . Contract law:Provides legal guidance on business agreements.

C . ACFE Code of Professional Ethics:Offers specific ethical standards for fraud examiners.

D . Philosophical principles:Offer foundational guidance on ethics.

B . Family and friends:While valuable for personal advice, they are the lowest reference point in determining professional ethics.

Conclusion:Guidance from family and friends is the lowest level of reference for determining ethical actions.

ISO 31000:2018 Guidelines:

This standard emphasizes that a risk management framework should align with the organization's size, complexity, objectives, and operations to ensure effectiveness and relevance.

Why A is Correct:

Proportionality ensures that resources are allocated efficiently, addressing risks that directly impact the organization's goals while avoiding overcomplication.

Reference:

ISO 31000:2018 risk management principles.