CFE-Fraud-Prevention-and-Deterrence Exam Dumps - Certified Fraud Examiner - Fraud Prevention and Deterrence Exam

Understanding Compliance Theory:

Compliance theory emphasizes preventing crime through incentives for voluntary adherence to laws and proactive administrative measures.

By addressing potential violations early, compliance theory aims to deter criminal behavior before it occurs.

Application of the Theory:

Examples include economic benefits for following regulations and monitoring mechanisms to identify early signs of noncompliance.

Conclusion:The statement accurately describes compliance theory.

ISO 31000:2018 emphasizes that effective risk management must be integrated into all activities across the organization—not just high-risk ones.

“An effective and efficient risk management program... is integrated into all organizational activities, is structured and comprehensive, and is customized and proportionate to the organization’s operations and objectives.”

Risk assessment is a core component of the COSO Framework and focuses on identifying, analyzing, and evaluating risks that could affect the organization's objectives. Andrew's initiative to evaluate threats aligns with this component, as it involves understanding the potential risks and their impact on achieving the organization's goals.

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General Approaches to Control Corporate Crime:

Common approaches include government intervention, consumer action, and voluntary corporate changes.

Financial institution funding is not typically listed as a direct control mechanism for corporate crime.

Analysis of Options:

B. Government intervention:Effective through regulation and enforcement.

C. Consumer action:Encourages ethical practices through market pressures.

D. Voluntary corporate changes:Demonstrates internal commitment to compliance.

Conclusion:Withdrawal of financial institution funding is not one of the recognized general approaches.