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

In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:
D) All of the above
A) The organization's incentive programs
B) The possibility of management's override of controls
C) Risks to the organization's reputation

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

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

Show Suggested Answer Hide 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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Jaclyn
4 days ago
I think D is the best choice. All factors matter.
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Flo
9 days ago
Incentive programs can really drive bad behavior.
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Tamra
15 days ago
I disagree, A and B are more critical.
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Na
20 days ago
Surprised that reputation risks are often overlooked.
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Joseph
25 days ago
Management override is a huge risk.
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An
1 month ago
Definitely all of the above!
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Dong
1 month ago
Surprised that reputation risk is often overlooked!
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Caren
1 month ago
Really? All of the above seems a bit much.
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Aja
2 months ago
What about the impact on employee morale?
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Vesta
2 months ago
I agree, all of these factors matter!
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Tennie
2 months ago
Definitely need to consider management override.
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Justine
2 months ago
I definitely remember discussing the need to consider all these factors in a fraud risk assessment, so I think the answer is D.
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Rosalyn
2 months ago
I feel like all of these options are important, but I’m uncertain if we covered how incentive programs specifically lead to fraud.
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Adolph
2 months ago
I remember a practice question that mentioned reputation risks, but I can't recall if it was part of a broader discussion on fraud risks.
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Chi
4 months 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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