ACFE Exam CFE-Fraud-Prevention-and-Deterrence Topic 1 Question 100 Discussion

Actual exam question for ACFE's CFE-Fraud-Prevention-and-Deterrence exam

Question #: 100
Topic #: 1

[All CFE-Fraud-Prevention-and-Deterrence Questions]

Which of the following is one of the recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

AA mandatory independent compensation committee

BShareholder oversight of internal controls

CA written charter for management

DAdequate audit committee resources and authority

Show Suggested Answer

Suggested Answer: B

by Yaeko at Dec 09, 2024, 02:53 PM

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Lili

1 months ago

I'm torn between B and D. Adequate compensation committee resources and an independent audit committee both sound like good ways to combat financial fraud. But I guess D is the more comprehensive solution.

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Filiberto

14 days ago

Having both adequate compensation committee resources and an independent audit committee is crucial for preventing fraud.

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Cyril

18 days ago

I agree, D seems like a more comprehensive solution.

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Gracia

20 days ago

B is important, but I think D covers more bases.

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Letha

2 months ago

Haha, I bet the Treadway Commission was like, 'Let's make sure these companies aren't cooking the books like they're making pancakes!'

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Kimberely

2 months ago

I agree with Elvis. An independent audit committee is crucial to ensure financial reporting integrity and accountability.

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Jesusita

13 days ago

I agree, it adds another layer of protection against fraudulent activities.

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Kaycee

18 days ago

I think implementing the recommendations from the Treadway Commission can greatly improve transparency in financial reporting.

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Lezlie

21 days ago

Yes, it helps to provide oversight and ensure transparency in financial reporting.

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Cassi

29 days ago

Yes, it's important to have checks and balances in place to ensure accurate financial reporting.

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Nichelle

1 months ago

I think having an independent audit committee is definitely important.

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Elena

1 months ago

I agree, having an independent audit committee can definitely help prevent fraud.

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Elvis

2 months ago

Option D seems like the most comprehensive approach to addressing the issue. An independent audit committee can provide an objective assessment and oversight to reduce the likelihood of fraud.

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Marquetta

22 days ago

Definitely, having checks and balances in place is crucial to prevent fraudulent activities.

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Reita

28 days ago

It's important to have that oversight to maintain integrity in financial reporting.

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Sue

1 months ago

I agree, having an independent audit committee can provide a fresh perspective and help ensure transparency.

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Lynna

1 months ago

Option D does seem like a good choice. An independent audit committee can definitely help prevent fraud.

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Leonardo

2 months ago

I'm not sure, but I think C) Develop a written charter for management could also be a good recommendation to prevent fraud.

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Josefa

2 months ago

I agree with Tyisha. Having an independent audit committee can help ensure transparency and reduce the risk of fraud.

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Tyisha

3 months ago

I think the answer is D) Have a mandatory independent audit committee.

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