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ACFE CFE-Fraud-Prevention-and-Deterrence Exam - Topic 4 Question 98 Discussion

Stevens, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination at ABC Company. His examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently, ABC's management asked Stevens to state in his official examination report that the organization is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. Under the ACFE Code of Professional Ethics. Stevens is permitted to comply with management's request based on the findings of his examination.
A) True
B) False

ACFE CFE-Fraud-Prevention-and-Deterrence Exam - Topic 4 Question 98 Discussion

Actual exam question for ACFE's CFE-Fraud-Prevention-and-Deterrence exam
Question #: 98
Topic #: 4
[All CFE-Fraud-Prevention-and-Deterrence Questions]

Stevens, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination at ABC Company. His examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently, ABC's management asked Stevens to state in his official examination report that the organization is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. Under the ACFE Code of Professional Ethics. Stevens is permitted to comply with management's request based on the findings of his examination.

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Suggested Answer: A

by Kaitlyn at Oct 19, 2024, 09:43 AM

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Otis
9 months ago
I think it's fine as long as he follows the ethics code.
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Lorriane
9 months ago
Sounds like a conflict of interest to me.
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Curt
10 months ago
Wait, can he really say they're free of fraud?
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Kenneth
10 months ago
Totally agree, he should report what he found.
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Jaime
10 months ago
Stevens found no evidence of fraud.
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Beula
10 months ago
I vaguely recall that the CFE should not make definitive statements unless there’s clear evidence. So, I’m leaning towards false on this one.
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Oretha
11 months ago
I feel a bit confused about this one. I thought the CFE had to maintain independence and not just go along with management's wishes.
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Avery
11 months ago
This situation seems similar to a practice question we did about reporting findings. I think the answer might be false because he can't just declare the company fraud-free without solid proof.
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Roselle
11 months ago
I remember studying the ACFE Code of Professional Ethics, and I think it emphasizes objectivity. I’m not sure if Stevens can just say there’s no fraud without evidence.
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Aja
11 months ago
This seems like a classic ethics question. I'll need to carefully weigh the different factors and obligations at play to determine the right course of action.
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Noe
11 months ago
Hmm, I think I know the answer to this one, but I want to double-check the details in the ACFE Code before I commit to an answer.
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Tamesha
11 months ago
Based on my understanding of the ACFE Code, I don't believe Stevens is allowed to comply with management's request, even if his examination didn't find conclusive evidence of fraud. The code requires CFEs to be objective and independent.
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Blossom
11 months ago
I'm a bit confused on this one. The question seems to be asking about the ethical obligations of a CFE, but I'm not sure if the answer is straightforward.
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Elli
11 months ago
This is a tricky one. I'll need to carefully review the ACFE Code of Professional Ethics to see if Stevens is actually permitted to comply with management's request.
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Lili
1 year ago
Nope, nope, nope. If there's no conclusive evidence of fraud, then that's what the report should say. Trying to cover it up would be a huge breach of the code of ethics. Stevens, don't fall for the pressure!
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Amie
1 year ago
Wow, talk about creative accounting! Management wants to cook the books, but Stevens has to stick to the facts. I guess they don't understand the meaning of 'independent examination'.
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Sherron
1 year ago
Management should focus on improving controls, not manipulating examination reports.
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Janna
1 year ago
It's important to maintain independence and integrity in fraud examinations.
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Margarita
1 year ago
Stevens should report what he found, not what management wants to hear.
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Nell
1 year ago
Haha, nice try ABC Company! I'm not falling for that one. Stevens knows better than to compromise his ethics just because the boss wants a clean bill of health.
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Joseph
1 year ago
Stevens: I have to follow the ACFE Code of Professional Ethics, I can't compromise my integrity.
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Evangelina
1 year ago
ABC Company Management: But we need assurance for the board of directors.
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Bonita
1 year ago
Stevens: I can't state that the organization is free of fraud if I didn't find conclusive evidence.
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Earleen
1 year ago
Absolutely not! The ACFE Code of Professional Ethics strictly prohibits us from making such a misleading statement, even if management requests it. Our integrity as fraud examiners is paramount.
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Shawnna
1 year ago
We must always prioritize honesty and ethical behavior in our work, regardless of external pressures.
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Rodolfo
1 year ago
Agreed, our credibility as Certified Fraud Examiners is at stake if we make misleading statements.
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Mitsue
1 year ago
It's important to adhere to the ACFE Code of Professional Ethics and report our findings accurately.
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Wava
1 year ago
We can't compromise our integrity as fraud examiners, even if management asks us to.
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Brynn
1 year ago
I see your point, but maybe Stevens can provide a disclaimer in the report about the limitations of his examination.
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Hailey
1 year ago
But isn't it unethical to state that the organization is free of fraud without conclusive evidence?
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Brynn
1 year ago
I think Stevens should comply with management's request.
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