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

Professional Skepticism Defined:

Professional skepticism is an attitude that includes a questioning mind and a critical assessment of evidence. Fraud examiners must remain vigilant to indications of potential fraud throughout an engagement.

Consistent Application:

ACFE standards emphasize that skepticism should be applied consistently, even if initial findings do not indicate fraud, to avoid overlooking potential risks.

Why D is Correct:

Relaxing skepticism can lead to missed evidence or poor judgment, undermining the examination's effectiveness​​.

ACFE Code of Professional Ethics Overview:

The Code explicitly prohibits unethical behavior, undisclosed conflicts of interest, and illegal activities. However, drawing evidence-based conclusions is encouraged as part of professional practice.

Why B is Correct:

Drawing conclusions based on evidence is central to the fraud examination process and is explicitly supported by ACFE standards.

Why Other Options are Prohibited:

A, C, and D:Engaging in unethical, conflicting, or illegal activities violates ACFE ethical guidelines​​.

References for All Questions:

ACFE Fraud Examination Guide and Code of Professional Ethics​​.

Best practices for fraud risk assessment and reporting​​.

Reporting standards and ethics in fraud examination​​.

Findings from the 2020 Report to the Nations:

Tips are the most common method of detecting fraud, accounting for over 40% of detected cases.

Whistleblower hotlines and other reporting mechanisms are vital for obtaining tips.

Analysis of Other Options:

A. Internal audit:While effective, it is less common than tips.

B. Confession:Rarely the initial method of detection.

D. External audit:Detects fraud in a smaller percentage of cases.

Conclusion:Tips are the most common method of fraud detection according to the 2020 Report to the Nations.