CFE – Fraud Prevention and Deterrence — Question 35

Which of the following is NOT considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics?

Answer options

• A. Accepting an assignment to secretly infiltrate the fraud examiner's employing organization and transmit inside information to another party
• B. Accepting an assignment to evaluate the anti-fraud controls at an organization in which the fraud examiner is a shareholder, provided the fraud examiner’s ownership interest is disclosed
• C. Undertaking engagements for both sides in a case of alleged vendor overbilling
• D. Undertaking an engagement that decreases the fraud examiner’s ability to perform their duties for their full-time employer

Correct answer: B

Explanation

Option B is correct because disclosing ownership interest allows for transparency and does not inherently create a conflict of interest. Options A, C, and D all involve situations that compromise the integrity and objectivity of the fraud examiner, making them clear conflicts of interest as per the ACFE Code of Professional Ethics.