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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q177-Q182):
NEW QUESTION # 177
Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Smith to encourage his team members to keep their cash drawers in balance?
- A. Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.
- B. Publicly call out and criticize employees whose cash drawers are over or short.
- C. Demote employees who continue to have reconciliation discrepancies
- D. Take away an hour of paid time off for each time the drawer is over or short
Answer: A
Explanation:
* Behaviorist Theories on Reinforcement:
* Positive reinforcement is the most effective way to encourage desired behavior by providing rewards for compliance.
* Analysis of Options:
* B. Public criticism: May create resentment and decrease morale.
* C. Loss of paid time off: A punitive measure that may not motivate improvement.
* D. Demotion: Effective for extreme cases but harsh and potentially counterproductive for minor errors.
* Conclusion:Offering a bonus for perfect reconciliation aligns with behaviorist principles of positive reinforcement.
NEW QUESTION # 178
For its compliance program to be effective, an organization must promote the program through appropriate incentives for compliance.
- A. False
- B. True
Answer: B
Explanation:
* Overview of Compliance Programs:An effective compliance program requires clear communication, enforcement, and promotion of ethical standards within an organization. Promoting compliance involves setting up positive incentives, such as rewards for ethical behavior, to encourage adherence to policies and regulations.
* Role of Incentives:
* Incentives serve as motivators for employees to align with the compliance culture. Examples include bonuses for meeting compliance goals, recognition for ethical behavior, and career advancement opportunities tied to compliance performance.
* The U.S. Federal Sentencing Guidelines for Organizations emphasize that for a compliance program to be effective, it must include incentives to encourage proper behavior and discipline to deter violations.
* Supporting Reference Materials:
* The Association of Certified Fraud Examiners (ACFE) highlights the importance of integrating incentives into compliance programs. These incentives are seen as essential for fostering a culture of ethics and preventing fraud.
* Industry standards and frameworks, such as COSO's "Internal Control - Integrated Framework," also stress the integration of incentives to promote adherence to internal controls and compliance standards.
* Importance of Positive Reinforcement:
* Positive reinforcement through incentives leads to higher employee morale, enhanced commitment to ethical practices, and a reduced likelihood of non-compliance.
* A compliance program that merely penalizes non-compliance without rewarding adherence can fail to motivate employees to prioritize compliance.
* Application in Fraud Prevention:
* By actively incentivizing compliance, organizations can proactively mitigate risks of fraud and unethical practices. This aligns employees' personal goals with the organization's ethical standards.
NEW QUESTION # 179
Employee support programs are a fraud prevention mechanism that addresses which leg of the Fraud Triangle
- A. Pressure
- B. Rationalization
- C. Opportunity
- D. Lack of integrity
Answer: B
NEW QUESTION # 180
Green, a Certified Fraud Examiner (CFE). had an ethical dilemma regarding her business contract with her professional partners. Which of the following sources of guidance would be considered the lowest level of reference to help Green in determining the most ethical course of action?
- A. Philosophical principles related to ethics
- B. Contract law
- C. Guidance from her family and friends
- D. The ACFE Code of Professional Ethics
Answer: C
Explanation:
* Hierarchy of Ethical Guidance Sources:
* A. Contract law: Provides legal guidance on business agreements.
* C. ACFE Code of Professional Ethics: Offers specific ethical standards for fraud examiners.
* D. Philosophical principles: Offer foundational guidance on ethics.
* B. Family and friends: While valuable for personal advice, they are the lowest reference point in determining professional ethics.
* Conclusion:Guidance from family and friends is the lowest level of reference for determining ethical actions.
NEW QUESTION # 181
Which of the following is a detective anti-fraud control?
- A. Separation of duties
- B. Fraud awareness training
- C. Hiring policies and procedures
- D. Independent reconciliations
Answer: B
NEW QUESTION # 182
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