ACFE CFE-Fraud-Prevention-and-Deterrence Exam With Confidence Using Practice Dumps

 Responsibilities of the Board of Directors:

The board is primarily responsible for oversight, governance, and ensuring the organization operates in the best interest of stakeholders. Key responsibilities include:

Acting as intermediaries between shareholders and management.

Safeguarding resources and assets.

Assessing management’s strategies and decisions.

 Why C is Correct:

Directing employees is a management responsibility, not a board function. The board focuses on oversight rather than operational execution.

 References:

ACFE governance principles emphasize the separation of oversight and operational roles​​.

Integrity, as described under the Standards of Professional Conduct, requires a mental attitude of independence and avoidance of any actual, potential, or perceived conflicts of interest.

“Certified Fraud Examiners shall conduct themselves with integrity… and shall investigate for actual, potential, and perceived conflicts of interest. CFEs shall disclose any such conflicts.”

Regulatory and Legal Misconduct:

This category includes practices that violate laws or regulations, such as anti-competitive behavior, insider trading, and conflicts of interest.

Why A is Correct:

Fraudulent customer payments are typically categorized under operational or financial fraud, not regulatory and legal misconduct.

Why Other Options are Incorrect:

B, C, and D:These practices involve violations of regulations or legal obligations, directly aligning with regulatory and legal misconduct​​.

References for All Questions:

ACFE Fraud Examination Guide and related professional standards​​.

International and jurisdictional auditing standards for public-sector auditors​​.

COSO and governance frameworks on fraud risk management​​.