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  1. Home
  2. ACFE Certification
  3. CFE-Fraud-Prevention-and-Deterrence Exam
  4. ACFE.CFE-Fraud-Prevention-and-Deterrence.v2026-06-17.q184 Dumps
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Question 36

According to behaviorists such as B. F. Skinner, which of the following scenarios is MOST LIKELY to occur when an undesired behavior is punished?

Correct Answer: A
* Understanding Behaviorism and Punishment:
* Behaviorists like B. F. Skinner argue that punishment temporarily suppresses undesired behaviors rather than eliminating them.
* Once the punitive stimulus is removed, the behavior is likely to reappear unless it is replaced with a more desirable behavior through reinforcement.
* Analysis of Options:
* B. Permanently suppressed: This contradicts the principles of behaviorism, as punishment alone does not permanently modify behavior.
* C. Occur more frequently: Punishment typically decreases behavior temporarily.
* D. Not affected by punishment: Punishment impacts behavior, but the effect is often temporary.
* Conclusion:The most likely outcome is that the behavior will return once the punishment ceases.
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Question 37

Blue. Inc. is a specialty retailer of customized shipping containers. The company receives a very large order from Green Company, a new customer from a country that is known to have high corruption risks. Which of the following is MOST ACCURATE regarding the due diligence procedures Blue should perform on Green before proceeding with this transaction?

Correct Answer: A
Due Diligence in High-Corruption Risk Transactions:
* When operating in high-risk environments, enhanced due diligence is critical. This includes evaluating payment methods, transaction patterns, and the customer's reputation.
Why A is Correct:
* Analyzing purchasing patterns and payment methods helps identify red flags such as unusual payment terms or volumes inconsistent with Green's business profile.
Why Other Options are Incorrect:
* B: Due diligence is necessary regardless of payment terms.
* C: Enhanced due diligence for high-risk countries does not constitute discrimination.
* D: Ignoring due diligence poses significant compliance and reputational risks.
References:
* ACFE guidance on due diligence and anti-corruption practices in global commerce.
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Question 38

During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization's reported revenue amount However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

Correct Answer: A
Implications of Management Manipulation:
Intentional manipulation, even if quantitatively immaterial, raises concerns about the reliability of management representations and the integrity of audit evidence.
Why Option A is Correct:
Reassessing the reliability of previously obtained evidence ensures that the auditors address potential biases or systemic issues arising from management's actions.
Analysis of Other Options:
B: Withdrawing from the audit:Premature unless the issue is pervasive.
C: Legal definition of fraud:Auditors are not required to meet this threshold for assessing evidence.
D: Quantitative materiality:Misstatements can be qualitatively material if they indicate intentional manipulation.
Conclusion:The auditors must reconsider the reliability of evidence due to the qualitative implications of management's actions.
References:Auditing standards and ACFE guidance on assessing audit evidence reliability.
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Question 39

(Jacques, an internal auditor, and Brenna, the company's travel and expense manager, have had several disagreements about employee expense limits and policies. Jacques has just been told that he will lead the company's fraud risk assessment. During the fraud risk assessment, Jacques should:)

Correct Answer: D
The Fraud Risk Assessment chapter stresses that the people leading and conducting the fraud risk assessment must be independent and objective. The manual specifically warns that personal experiences or biases can improperly affect a team member's evaluation of fraud risks in a business area. It gives an example that if a team member had a bad experience with someone in a department, someone else should perform the fraud risk assessment work for that area to avoid bias. That guidance directly applies here. Because Jacques has had multiple disagreements with Brenna, his objectivity regarding the travel and expense function could reasonably be impaired or questioned. Therefore, to preserve the integrity of the assessment process, he should request that another person perform the fraud risk assessment work related to employee travel and expenses.
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Question 40

For Its compliance program to be effective, an organization must perform procedures to ensure management hires only ethical Individuals who exercise a substantial measure of discretion In acting on the organization's behalf

Correct Answer: A
* Importance of Hiring Ethical Individuals:
* Ethical hiring practices are foundational to an effective compliance program. Employees with a high measure of discretion can significantly impact organizational behavior and risk.
* Pre-hiring background checks, ethical screening, and thorough interviews help mitigate the risk of unethical behavior.
* Conclusion:For a compliance program to be effective, management must ensure ethical hiring practices.
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