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

Rational choice theory posits that criminal behavior is a result of deliberate decision-making. According to the ACFE manual:

“Rational choice theory assumes that individuals weigh the expected benefits of committing a crime against the possible consequences. If the perceived benefits outweigh the perceived risks, the individual may choose to offend.”

Fraud Prevention Through Performance Management:Performance measurement and management programs can play a role in preventing fraud by ensuring accountability, setting ethical expectations, and reinforcing organizational goals.

Analysis of Options:

A. Ethics-based metrics:Encourages accountability and reduces fraud risks.

B. Regular training:Ensures employees are competent, reducing errors and opportunities for fraud.

D. Reasonable performance goals:Prevents pressure to commit fraud by setting realistic benchmarks.

C. Loosely defined job descriptions:This creates ambiguity, reduces accountability, and increases the risk of fraud, making it ineffective.

Conclusion:Option C is not an effective way to prevent fraud.

A formal anti-fraud policy should be clear, legally sound, and consistently applied. The CFE Fraud Prevention and Deterrence material explains that management should consult legal counsel when developing the policy and should ensure that every allegation and every suspected offender is handled uniformly. Uniform handling reduces claims of unfair treatment and supports a credible zero-tolerance stance. Option A is incorrect because legal considerations should not be avoided; they are important in policy development. Option C is too broad because an effective policy should be specific enough to guide conduct and enforcement. Option D is also incorrect because examples of prohibited conduct help employees understand expectations and help management support disciplinary action. Therefore, option B is the best answer.