Legit CFE-Fraud-Prevention-and-Deterrence Exam Download

The Corporate Governance chapter summarizes the G20/OECD Principles of Corporate Governance and notes several major areas they address. These include the basis for an effective corporate governance framework, the rights and equitable treatment of shareholders, stakeholder roles, disclosure and transparency, and the responsibilities of the board. The manual specifically states that the Principles contain guidance regarding appropriate board structures, responsibilities, and procedures. That wording directly matches option C. Option A is incorrect because the Principles refer to equitable treatment of shareholders, not governing body members. Option B inaccurately assigns the framework responsibility to corporations instead of to governments and jurisdictions. Option D is more aligned with internal control frameworks than the specific wording used to summarize the G20/OECD Principles. Therefore, option C is the correct answer.

Regulatory and Legal Misconduct:

This category includes practices that violate laws or regulations, such as anti-competitive behavior, insider trading, and conflicts of interest.

Why A is Correct:

Fraudulent customer payments are typically categorized under operational or financial fraud, not regulatory and legal misconduct.

Why Other Options are Incorrect:

B, C, and D:These practices involve violations of regulations or legal obligations, directly aligning with regulatory and legal misconduct​​.

References for All Questions:

ACFE Fraud Examination Guide and related professional standards​​.

International and jurisdictional auditing standards for public-sector auditors​​.

COSO and governance frameworks on fraud risk management​​.

In the White-Collar Crime chapter, the manual’s discussion of Crimes of the Middle Classes identifies several factors contributing to the rising problem of economic crime. One of the specific factors mentioned is that the economy increasingly runs on credit, which often leads to rising personal debt. The manual notes that offenders frequently showed serious discrepancies between their resources and their commitments, and it further explains that the easy availability of money and goods on credit can fuel fraud schemes. This directly supports option B. The other answer choices do not reflect the factors listed in the manual. Therefore, the correct answer is the economy’s increased reliance on credit.

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