Authentic ACFE Certification Exam CFE-Fraud-Prevention-and-Deterrence Questions Answers

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​​.

COSO Definition of Internal Control:

COSO defines internal control as a process executed by an entity’s board, management, and personnel to provide reasonable assurance about achieving objectives in operations, reporting, and compliance.

Analysis of Options:

A. Corporate compliance: Corporate compliance focuses on adhering to laws and regulations, not the broader operational objectives.

B. Fraud risk management: This is a component of internal control, not its definition.

C. Risk assessment: This is a step within the internal control process but not the overarching process.

D. Internal control: Matches the COSO definition accurately.

Conclusion:Internal control is the correct answer as defined by COSO.

References:COSO Internal Control Framework documentation​​.

Fraud Triangle Components:

The fraud triangle consists of perceived opportunity, rationalization, and perceived financial need.

Perceived non-shareable financial need refers to personal pressures, such as debt or addiction, that motivate fraudulent behavior.

Why D is Correct:

Jenny's actions are driven by her inability to share her financial struggles (her husband’s gambling debts) with others, aligning with the perceived financial need leg of the fraud triangle​​.

Why Other Options are Incorrect:

A. Rationalization: Describes justifying fraud, not financial need.

B. Perceived opportunity: Refers to access to resources to commit fraud.

C. Perceived acquiescence: Not part of the fraud triangle.

References for All Questions:

ACFE Fraud Examination Guide and related case studies​​.

International Standards on Auditing (ISA) guidelines, particularly ISA 240​​.

Criminological research on organizational fraud influences and fraud triangle applications​​.