ACFE CFE-Fraud-Prevention-and-Deterrence Exam - Topic 2 Question 122 Discussion

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

Question #: 122
Topic #: 2

In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:

AThe organization's incentive programs

BThe possibility of management's override of controls

CRisks to the organization's reputation

DAll of the above

Show Suggested Answer

Suggested Answer: D

Scope of Fraud Risk Assessment:

The fraud risk assessment team must consider various factors, including:

A . Incentive programs:Can create pressures that lead to fraud.

B . Management override of controls:A key risk for fraud occurring despite existing safeguards.

C . Risks to reputation:Fraud incidents can harm the organization's public image.

Comprehensive Discussion:

Considering all these factors ensures a thorough identification of inherent fraud risks.

Conclusion:The fraud risk assessment team should discuss all listed items.

by Hubert at May 14, 2026, 12:35 PM

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28 days ago

I think we talked about management's override of controls in class, but I'm not sure how it relates to incentive programs.

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