ACFE CFE-Fraud-Prevention-and-Deterrence Dumps Questions Answers

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​​.

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.

References:ACFE behavioral insights and fraud prevention strategies​​.

 Definition of Organizational Crime:

Organizational crime refers to illegal actions committed by a corporation or individuals acting on behalf of the organization to benefit the corporation or its leaders.

Examples include antitrust violations, environmental crimes, and fraudulent financial reporting.

 Why B is Correct:

A price-fixing scheme involves collusion among companies to manipulate prices, a clear example of organizational crime designed to benefit the involved corporations.

 Why Other Options are Incorrect:

Options A, C, and D represent individual crimes for personal gain, not organizational crimes​​.