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

Management ' s Role in Fraud Monitoring:

Employees should be aware that management monitors lifestyle and behavior changes. Transparency discourages fraudulent behavior by reinforcing accountability.

Effect of Transparency:

Awareness of monitoring helps maintain a culture of ethical behavior and reduces the likelihood of fraud.

Conclusion:The statement is false because employees should know that management is vigilant about potential fraud indicators.

The ACFE research consistently finds that the majority of occupational fraudsters are first-time offenders. Specifically, “85% of occupational fraud perpetrators had never been punished or terminated for fraud-related conduct prior to the crimes in this study.”

Internal Auditor ' s Role in Fraud Risk Management:

Internal auditors are not directly responsible for establishing or maintaining anti-fraud controls (Option D). This responsibility lies with management.

They are also not responsible for obtaining reasonable assurance that financial statements are free of fraud (Option A). This is the role of external auditors.

Oversight of management ' s fraud risk actions (Option B) is primarily a governance role, not the auditor ' s direct responsibility.

Internal auditors focus on identifying and assessing fraud risks, evaluating controls, and recommending further action when necessary.

Conclusion:Option C aligns with the internal auditor ' s responsibilities as per the standards outlined in the ACFE ' s fraud risk management framework.