ACFE CFE-Fraud-Prevention-and-Deterrence Exam - Topic 4 Question 68 Discussion

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

Question #: 68
Topic #: 4

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

Gray, an independent Certified Fraud Examiner (CFE), was hired by Green, president of the ABC Corporation, to investigate allegations that one of ABC's employees is taking kickbacks. During the investigation. Gray teams that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:

ANot disclose the information about Green.

BReport Green to law enforcement

CTell the company's board of directors about Green.

DResign from the engagement

Show Suggested Answer

Suggested Answer: B

by An at Jul 29, 2023, 05:12 PM

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Albina

5 months ago

Wow, I didn't expect Green to be involved too!

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Stephaine

5 months ago

Wait, is it really okay to just not disclose that info?

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Stephaine

5 months ago

Resigning seems like a weak option.

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Skye

6 months ago

I think telling the board is the right move here.

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Mabelle

6 months ago

Gray should definitely report Green to law enforcement.

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Dexter

6 months ago

I think reporting to law enforcement is a serious step, but I remember we talked about the chain of command and notifying the board first in similar scenarios.

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Amie

6 months ago

I feel like resigning from the engagement could be a safe option, but I wonder if that's really the best course of action in this situation.

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Ilene

6 months ago

This reminds me of a practice question where we had to decide whether to report unethical behavior. I think option C might be the right choice, but I'm not completely confident.

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Sheron

7 months ago

I remember discussing the importance of confidentiality in our ethics class, but I'm not sure if that applies here since Green is involved in fraud.

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Reita

7 months ago

Hmm, this is a tricky one. I'm a little confused by the wording of the options. I'm not sure if B or E might be the best fit, since they both seem to be questioning the significance or severity of the caffeine's effects. But I'll have to think it through carefully before selecting an answer.

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Freeman

7 months ago

Okay, I know Class A shares have front-end loads, so that's not the answer. Let me focus on the other options.

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Wei

7 months ago

False, definitely False. The question clearly states the lifting rope can be left on the tower, so that means it shouldn't be left there.

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Rosendo

7 months ago

This question seems straightforward, but I want to make sure I understand the nuances. I'll need to carefully read through the statements and think about the requirements for the marital deduction.

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Stephania

11 months ago

I'm sorry, but I can't just ignore this. Green's involvement in fraud is a serious breach of ethics, and I have a responsibility to report it. Option C all the way - the board needs to know the truth, even if it's uncomfortable.

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Arthur

11 months ago

Hmm, I don't know, guys. I think the best move here is to keep quiet and not rock the boat. After all, we wouldn't want to get on Green's bad side, right? It's just a little fraud, nothing to worry about. *wink wink*

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Ben

11 months ago

Ha! Resign? Not a chance. This is the kind of juicy scandal that could make my career! I'm going with option B and reporting Green to the authorities. Bring on the drama!

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Louvenia

10 months ago

This could definitely be a career-defining case for us.

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Elfriede

10 months ago

I agree, we have to follow the ACFE Code of Professional Ethics.

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Lindsey

11 months ago

Option B: Report Green to the authorities.

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Theodora

12 months ago

I'm torn on this one. On the one hand, we have a duty to report any fraudulent activities we uncover. But on the other hand, it could be risky to go against the president of the company. I'm leaning towards option D - resignation.

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Belen

10 months ago

It's a tough decision, but ultimately doing the right thing is most important.

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Shizue

11 months ago

I agree, it's important to maintain our ethical standards.

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Shasta

11 months ago

Option D - resignation is the best choice in this situation.

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Mable

1 year ago

But what about client confidentiality? Maybe Gray should tell the company's board of directors instead.

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Francesco

1 year ago

Wow, this is a tricky situation. I think the ethical choice here is to report Green to the board of directors. They need to know about the fraud, even if it's unrelated to the initial investigation.

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