Certified Fraud Examiner CFE-Fraud-Prevention-and-Deterrence Updated Exam

nti-Fraud Policy Components:

A robust anti-fraud policy should provide clear definitions and examples of fraud and misconduct to ensure employees understand what constitutes unacceptable behavior.

Specific examples make investigations and enforcement more consistent and defensible.

Analysis of Option B:

Avoiding specific examples creates ambiguity, which can hinder enforcement and increase legal risks when discharging employees.

Properly vetted examples, reviewed with legal counsel, help ensure compliance with legal standards.

Conclusion:Option B is false because including examples of fraud and misconduct strengthens the anti-fraud policy.

 Board Responsibilities in Fraud Risk Management:

The board plays a critical role in overseeing the organization's fraud risk management activities to ensure accountability and effective governance.

 Why A is Correct:

The board provides high-level oversight but does not typically involve itself in the design or implementation of the fraud risk management program.

 Why Other Options are Incorrect:

B and D:Design and implementation are management responsibilities.

C:Punishment of fraud perpetrators is not directly within the board's purview​​.

Behavioral Studies by B.F. Skinner:

Punishment may temporarily suppress undesired behavior but does not address the root cause or provide alternative positive behaviors.

Once punishment ceases, the behavior often resurfaces.

Analysis of Options:

A. Increase in behavior:This contradicts findings; punishment reduces behavior temporarily.

B. No effect:Punishment does affect behavior but typically in the short term.

D. Permanent suppression:Rarely achieved without reinforcement of alternative behaviors.

Conclusion:Punishment results in temporary suppression of undesired behavior.