CFE-Fraud-Prevention-and-Deterrence Exam Dumps : Certified Fraud Examiner - Fraud Prevention and Deterrence Exam

Analysis of Each Scenario:

A. Rodrigo: Reporting unrelated findings without a clear mandate violates principles of focus and relevance under the ACFE Code.

B. Vivian: Overlooking evidence demonstrates a lack of due diligence and professionalism.

C. Tom: Complying with a court order is permissible, but failure to safeguard client confidentiality before receiving the order constitutes a breach.

Ethical Standards:

Each scenario demonstrates a failure to meet the ethical and professional responsibilities outlined in the ACFE Code.

Conclusion:All scenarios represent violations of the ACFE Code of Professional Ethics.

References:ACFE Code of Professional Ethics, particularly diligence and confidentiality provisions​​.

 Definition of Professional Skepticism:

Professional skepticism requires maintaining a questioning mindset and critically assessing evidence throughout the fraud examination process.

 Why D is Correct:

Professional skepticism ensures that fraud examiners remain vigilant and rely on evidence to conclude whether fraud has occurred or not. It is dispelled only when sufficient evidence supports a clear conclusion.

 Why Other Options are Incorrect:

A: While skepticism is critical, it does not mean refusing to acknowledge credible evidence.

B: Assuming no fraud occurred contradicts the principle of skepticism.

C: Hypotheses should consider the nature of the assignment and available information​​.

This scenario is an example of punishment. Punishment involves introducing a consequence (in this case, the loss of responsibility for cross-departmental projects) to discourage undesirable behavior. The manager uses this approach to address Devon’s negative attitude and to promote better cooperation with other departments in the future.

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