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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Professional Ethics | 5–10% | - Conflicts of interest and integrity - ACFE Code of Professional Ethics - Ethical decision-making |
| Topic 2: Corporate Governance | 20–25% | - Internal control systems
- Governance frameworks and principles
|
| Topic 3: Understanding Criminal Behavior | 5–10% | - Theories of crime causation
|
| Topic 4: White-Collar Crime | 15–20% | - Organizational vs occupational crime - Legal prosecution and sanctions - Causal factors and opportunity structures - Impact on organizations and society - Definition and characteristics |
| Topic 5: Fraud Prevention Programs | 15–20% | - Designing prevention strategies - Communication and training - Monitoring and continuous improvement |
| Topic 6: Fraud Risk Assessment | 15–20% | - Risk identification methodologies - Risk analysis and prioritization - Assessment implementation and documentation |
| Topic 7: Management's Fraud-Related Responsibilities | 5–10% | - Establishing anti-fraud policies - Reporting mechanisms - Oversight and accountability |
1. The existence of many specialized departments within a company generally decreases the overall risk of fraud within the organization.
A) True
B) False
2. Which of the following is TRUE regarding G20/OECD Principles of Corporate Governance (the Principles)?
A) The Principles are intended to be applicable in developed economies but not in emerging markets.
B) The Principles state that an entity's corporate governance framework should discourage active cooperation between corporations and stakeholders in creating wealth.
C) The Principles state that an entity's corporate governance framework should ensure the equitable treatment of all shareholders.
D) The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them
3. According to the 2020 Report to the Nations.___________schemes ate the MOST COMMON form of occupational fraud, while_________schemes are the MOST COSTLY form of occupational fraud.
A) Asset misappropriation; corruption
B) Financial statement fraud: corruption
C) Corruption, asset misappropriation
D) Asset misappropriation: financial statement fraud
4. Which of the following is BEST classified as a type of external fraud risk?
A) Adding ghost employees to payroll
B) Embezzling incoming customer payments
C) Collusion between contractors
D) Reporting revenue in the wrong period
5. Cho, an internal auditor, and Pierre, a sales manager, have had several disagreements about the sales tactics used by Pierre's team. Cho has just been told that she will lead the company's fraud risk assessment. During the fraud risk assessment, Cho should:
A) Confront Pierre about the disagreements and discuss how they increase the company's risk of fraud.
B) Request that someone else perform the fraud risk assessment work that is related to the sales function's activities.
C) Automatically designate the sales function as a high-risk area.
D) Include her disagreements with Pierre as a factor when assessing the risk of fraud in the sales function.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: B |
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