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

Fraud risk management is considered to be the foundation of effective corporate governance

Corporate governance's primary purpose is to ensure the accuracy of the organization's financial reports

Effective corporate governance practices are most necessary in an organization in which the owners are also the individuals responsible for setting the corporate strategy.

An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization

Include detailed descriptions of the organization's anti-fraud controls.

Include common characteristics that lead individuals to commit fraud.

Restrict training to formal live, in-person sessions required of all full-time, lower-level employees.

Require the training to only be presented by organizational executives or anti-fraud professionals.

Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.

An increase in employee wealth is always a sign of fraud that should be investigated.

Managers should only observe employees for signs of suspicious behavioral or lifestyle changes if they can do so without the employees' knowledge.

Managers should be instructed to observe employees for any unusual lifestyle improvements, such as an unexplained increase in luxury purchases.

Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods.

Fraud assessment Questioning techniques are most appropriately used when attempting to determine who might be responsible for a particular fraud scheme.

Implementing proactive fraud audit procedures demonstrates the organization's intention to aggressively look for possible fraudulent conduct.

Surprise audit procedures are an effective fraud detection mechanism, but they do not help prevent fraud

Pressure from changes in the competitive environment

Lowered regulatory enforcement by the government

Loss of funding from financial institutions

Demands from consumers to change