ACFE CFE-Fraud-Prevention-and-Deterrence Exam - Topic 2 Question 118 Discussion

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

Question #: 118
Topic #: 2

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

[Fraud Risk Management]

Hart, Inc. hired Kathleen, a risk management expert, to design a risk management program for the organization. Kathleen should focus on balancing which of the following two factors when creating the program?

AManagement's risk appetite and the organization's ability to meet its objectives.

BThe organization's internal controls and its financial reporting model.

CManagement's risk appetite and relevant regulatory requirements.

DThe organization's objectives and available resources.

Show Suggested Answer

Suggested Answer: A

by Catarina at Mar 08, 2026, 01:46 PM

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Maynard

2 days ago

Totally agree with A)! Balancing risk appetite is crucial.

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Estrella

7 days ago

Wait, are we sure about A)? Seems too simplistic.

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Leatha

12 days ago

I think B) makes more sense. Internal controls are key.

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Latanya

17 days ago

A) is definitely the right choice!

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Marsha

23 days ago

I lean towards option A, but I wonder if the organization's objectives and available resources might also play a significant role. It's tricky!

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Deeanna

28 days ago

I feel like option C could be important too, especially with all the regulatory changes we've studied. Balancing risk appetite with regulations seems crucial.

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Pearly

1 month ago

I'm not entirely sure, but I remember a practice question that emphasized the importance of internal controls. Maybe option B is relevant?

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Alease

1 month ago

I think the focus should be on management's risk appetite and the organization's ability to meet its objectives. That seems to align with what we discussed in class.

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