Discuss ACFE CFE-Fraud-Prevention-and-Deterrence Exam Topic 4 Question 109

[Ethical Responsibilities of the Fraud Examiner]

Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

AGreen a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

BStephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.

CSusan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file. Susan complied with the court order, even though she did not have the client's authorization to do so.

DAll of the above are violations

Suggested Answer: D

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29 comments · newest first

Skye 10 months ago

B seems like a big oversight, but not sure it's a violation.

Dianne 10 months ago

Wait, are we sure about C? She was just following a court order.

Nida 10 months ago

I agree, A is the clear choice here.

Ruthann 11 months ago

All of them seem sketchy, but D feels too broad.

Gracia 11 months ago

A is definitely a violation, including unrelated info is unprofessional.

Luther 11 months ago

I wonder if D is the right answer since all of these scenarios seem to involve ethical lapses in some way.

Herminia 11 months ago

I practiced a similar question about client confidentiality, and I feel like C might be a violation too since Susan disclosed information without authorization.

Virgina 12 months ago

I'm not entirely sure, but I think B could also be problematic since Stephanie didn't personally verify the findings.

Stephanie 12 months ago

I remember discussing how including unrelated findings in a report could breach ethical guidelines, so I think A might be a violation.

Rodney 12 months ago

I remember learning about situations like these in class. I'll need to think through how the ACFE Code would apply to each scenario to determine the most likely violation.

Jonelle 1 year ago

Ugh, ethics questions are the worst. I'm just going to guess and hope for the best. Ethical codes can be so ambiguous sometimes.

Valene 1 year ago

Okay, I've got a good handle on the ACFE Code from my studies, so I think I can confidently identify the most likely violation here. I'll make sure to read the question and answer choices closely.

Paris 1 year ago

Hmm, this is a tricky one. I'm not entirely sure about the specifics of the ACFE Code, so I'll need to think through each scenario carefully and try to apply the ethical principles.

Shawn 1 year ago

This question seems pretty straightforward. I'll need to carefully review the ACFE Code of Professional Ethics to identify which of these scenarios would be the most likely violation.

Novella 1 year ago

I'm just imagining Rodrigo sitting there like, 'Oops, my bad. Didn't mean to expose those other issues.' Rookie move, man.

Serina 1 year ago

Dude, these fraud examiners need to get their act together. All of these sound like major ethics breaches to me.

Camellia 1 year ago

I see your point, maybe D is the correct answer after all.

Maryann 1 year ago

Hah, Tom's just throwing his client under the bus. Disclosing information without authorization? Classic violation right there.

Elinore 1 year ago

↳ replying to Maryann

B) Vivian, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she was in a hurry to complete the investigation, she overlooked key items of evidence and ended up failing to uncover a major fraud scheme.

Kris 1 year ago

↳ replying to Maryann

A) Rodrigo. a CFE. uncovered several material Internal control deficiencies unrelated to the Kickback scheme he was Investigating. In his final report to management. Rodrigo included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

Reiko 1 year ago

I agree with Kami, it's important to stay focused on the task at hand.

Kami 1 year ago

But including unrelated deficiencies in the report seems like a violation of ethics.

Camellia 1 year ago

I disagree, I believe the answer is D.

Kami 1 year ago

I think the answer is A.

Kathrine 1 year ago

Hmm, Vivian really dropped the ball there. Overlooking key evidence is a big no-no for a fraud examiner. That's gotta be a violation for sure.

Lynelle 1 year ago

Wow, this is a tricky one. I'm not sure Rodrigo should have included those unrelated control deficiencies in his report. Seems like a stretch to call that a violation.

Lucille 1 year ago

↳ replying to Lynelle

It's all about maintaining integrity and being thorough in their investigations.

Arleen 1 year ago

↳ replying to Lynelle

Yeah, I think they want to make sure fraud examiners stay focused on the task at hand.

Georgiana 1 year ago

↳ replying to Lynelle

I agree, it does seem like a tough call. But the Code of Professional Ethics is pretty strict.

ACFE CFE-Fraud-Prevention-and-Deterrence Exam - Topic 4 Question 109 Discussion