ACFE CFE-Fraud-Prevention-and-Deterrence Exam With Confidence Using Practice Dumps

Corporate Governance in Multinational Corporations:

Multinational corporations must adhere to the legal, regulatory, and governance frameworks of each jurisdiction in which they operate. These frameworks may vary significantly across countries.

Why Other Options are Incorrect:

B: There is no Universal Corporate Governance Act applicable globally.

C: G20/OECD Principles provide guidelines but are not mandatory compliance requirements.

D: Operating in multiple jurisdictions increases governance complexity, but does not exempt corporations from compliance.

Why A is Correct:

It reflects the reality of multinational operations, where governance compliance must align with local laws and regulations​​.

References for All Questions:

ACFE and Treadway Commission fraud prevention guidelines​​.

ISSAI standards and international governance principles​​.

COSO framework and legal requirements for multinational corporations​​.

 Key Elements of Routine Activities Theory:

This criminological theory asserts that crime is likely when three conditions converge:

Availability of suitable targets.

Absence of capable guardians (e.g., security or oversight).

Presence of motivated offenders.

 Why C is Correct:

Routine activities theory focuses on the environmental and situational factors that facilitate crime, making it distinct from other criminological theories.

 Why Other Options are Incorrect:

A (Rational choice theory): Focuses on individual decision-making.

B (Differential association theory): Emphasizes learning criminal behavior through interaction.

D (Social control theory): Focuses on societal bonds preventing crime​​.

 Fraud Risk Reduction Objectives:

Inherent fraud risk: The risk present before any controls are applied.

Residual fraud risk: The remaining risk after controls have been implemented.

 Why D is Correct:

The goal of anti-fraud controls is to minimize residual risk to acceptable levels, recognizing that complete elimination of risk is unattainable.

 Why Other Options are Incorrect:

A and C: It is impractical to completely eliminate inherent or residual fraud risks.

B: Residual risk should be lower than inherent risk, but controls aim for significant reduction​