ACFE CFE-Fraud-Prevention-and-Deterrence Exam - 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

Limited Time Offer

25%

Off

Get Premium CFE-Fraud-Prevention-and-Deterrence Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Sage

3 months ago

A mandatory independent compensation committee? Really? That seems excessive.

upvoted 0 times

...

Tanja

3 months ago

D is the best option here, no question about it!

upvoted 0 times

...

King

4 months ago

B is crucial for transparency, but I doubt it would work effectively.

upvoted 0 times

...

Malissa

4 months ago

A sounds right too, but I'm not sure it's mandatory.

upvoted 0 times

...

Paulene

4 months ago

I think it's D, definitely need strong audit committees!

upvoted 0 times

...

Aileen

4 months ago

I vaguely remember that having adequate resources for audit committees was highlighted in our readings. Option D sounds familiar.

upvoted 0 times

...

Sabra

5 months ago

I practiced a similar question, and I feel like a written charter for management was mentioned, but I can't recall if it was a recommendation.

upvoted 0 times

...

Dana

5 months ago

I’m not entirely sure, but I remember something about independent oversight being crucial. Could it be option B?

upvoted 0 times

...

Loren

5 months ago

I think the Treadway Commission emphasized the importance of audit committees, so I might lean towards option D.

upvoted 0 times

...

Rodolfo

5 months ago

I'm confident the answer is D. The Treadway Commission emphasized the importance of a strong audit committee to prevent financial fraud.

upvoted 0 times

...

Alica

5 months ago

The Treadway Commission recommendations are important, so I'll review my notes on that to help me pick the right choice here.

upvoted 0 times

...

Sherell

5 months ago

Hmm, I'm not totally sure about this one. I'll have to think it through carefully before selecting an answer.

upvoted 0 times

...

Sheridan

5 months ago

This question seems straightforward, I think the answer is D - Adequate audit committee resources and authority.

upvoted 0 times

...

Lili

10 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.

upvoted 0 times

Filiberto

9 months ago

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

upvoted 0 times

...

Cyril

9 months ago

I agree, D seems like a more comprehensive solution.

upvoted 0 times

...

Gracia

9 months ago

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

upvoted 0 times

...

Letha

10 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!'

upvoted 0 times

...

Kimberely

10 months ago

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

upvoted 0 times

Jesusita

9 months ago

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

upvoted 0 times

...

Kaycee

9 months ago

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

upvoted 0 times

...

Lezlie

9 months ago

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

upvoted 0 times

...

Cassi

9 months ago

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

upvoted 0 times

...

Nichelle

10 months ago

I think having an independent audit committee is definitely important.

upvoted 0 times

...

Elena

10 months ago

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

upvoted 0 times

...

Elvis

11 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.

upvoted 0 times

Marquetta

9 months ago

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

upvoted 0 times

...

Reita

9 months ago

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

upvoted 0 times

...

Sue

10 months ago

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

upvoted 0 times

...

Lynna

10 months ago

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

upvoted 0 times

...

Leonardo

11 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.

upvoted 0 times

...

Josefa

11 months ago

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

upvoted 0 times

...

Tyisha

11 months ago

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

upvoted 0 times

...