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

Components of COSO’s Enterprise Risk Management Framework:

D. Review and revision:Ensures continuous improvement and adaptation of risk management practices to align with changing circumstances.

A. Event avoidance:Not explicitly listed as a component but is part of broader risk responses.

B. Risk tolerance:An element within risk management but not a separate component.

C. Compliance:A goal of ERM but not a framework component.

Conclusion:Review and revision is a core component of COSO ' s ERM framework.

The Fraud Prevention Programs chapter states that management’s handling of known fraud incidents is an important part of the organization’s anti-fraud program. The manual explains that a company must make clear it has zero tolerance for fraud and that failing to punish perpetrators consistently makes the fraud prevention program less effective, if not useless. It further notes that having a public record of the incident can be important and specifically says that reporting known incidents of fraud to law enforcement can be an effective step in making the organization’s zero-tolerance stance clear. This approach reinforces deterrence, demonstrates seriousness, and supports consistent consequences. Therefore, among the listed choices, reporting known incidents of fraud to law enforcement is the most effective response.