Exam CFE - Fraud Prevention topic 1 question 193 discussion

Actual exam question from ACFE's CFE - Fraud Prevention

Question #: 193
Topic #: 1

Cho, an internal auditor, and Pierre, a sales manager, have had several disagreements about the sales tactics used by Pierre's team. Cho has just been told that she will lead the company's fraud risk assessment. During the fraud risk assessment, Cho should:

A. Automatically designate the sales function as a high-risk area.
B. Request that someone else perform the fraud risk assessment work that is related to the sales function's activities.
C. Include her disagreements with Pierre as a factor when assessing the risk of fraud in the sales function.
D. Confront Pierre about the disagreements and discuss how they increase the company's risk of fraud.

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Suggested Answer: B 🗳️

by vynyfulu at April 5, 2025, 12:44 p.m.

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AjaiArjuna

1 week, 3 days ago

Selected Answer: C

The correct answer is: C. Include her disagreements with Pierre as a factor when assessing the risk of fraud in the sales function. While Cho must remain objective, prior conflicts or concerns—especially those related to questionable sales tactics—can be relevant indicators of potential fraud risk. The fraud risk assessment process should consider all known issues, including interpersonal dynamics that may signal ethical concerns, pressure to meet targets, or weak controls.

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