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

Comprehensive and Detailed in Depth Explanation:

Publicizing whistleblower policies both internally and externally demonstrates the organization’s commitment to transparency and ethical conduct. Best practices include clearly communicating the reporting process, available protections, and encouraging reporting by all employees without fear of retaliation. Including a list of all past misconduct is unnecessary (eliminating A), while emphasizing protections only for lower-level staff (D) or focusing on penalties (C) undermines the policy’s intent.

 Criminogenic Nature of Organizations:

Research suggests that organizational culture and pressures can override an individual's personal values, especially when authority figures issue direct orders to engage in unethical behavior.

 Why B is Correct:

Strong personal values do not guarantee resistance to unethical orders, as obedience to authority is a powerful psychological force, as seen in studies like the Milgram experiment​​.

 Implication for Fraud Prevention:

Organizations must establish strong ethical environments to reduce the influence of authority pressure on employees

 Professional Responsibility Under ACFE Code of Ethics:

The ACFE Code of Professional Ethics requires Certified Fraud Examiners (CFEs) to disclose material information to the proper authorities. When fraud is discovered, the CFE must act in the best interest of the organization while adhering to ethical standards.

In this scenario, Gray must report Green's involvement in unrelated fraud to ABC Corporation's board of directors. This ensures transparency and accountability without breaching client confidentiality unnecessarily.

 Relevant Principles from ACFE Code of Ethics:

Integrity:CFEs must act honestly and report findings to the appropriate parties.

Objectivity:The CFE must avoid conflicts of interest and ensure impartiality in all findings and disclosures.

 Board Reporting Responsibility:

Reporting to the board is appropriate because they are responsible for corporate governance and oversight. Law enforcement involvement should follow organizational protocols unless laws explicitly mandate direct reporting​​.