* ACFE Code of Professional Ethics Overview:
* The Code explicitly prohibits unethical behavior, undisclosed conflicts of interest, and illegal activities. However, drawing evidence-based conclusions is encouraged as part of professional practice.
* Why B is Correct:
* Drawing conclusions based on evidence is central to the fraud examination process and is explicitly supported by ACFE standards.
* Why Other Options are Prohibited:
* A, C, and D:Engaging in unethical, conflicting, or illegal activities violates ACFE ethical guidelines.
References for All Questions:
* ACFE Fraud Examination Guide and Code of Professional Ethics.
* Best practices for fraud risk assessment and reporting.
* Reporting standards and ethics in fraud examination.

Communication of Fraud Risk Assessment Process:Effective communication ensures that employees understand the objectives and importance of the fraud risk assessment process. The following practices contribute to its success:
A: Personalization:Personalized communication increases engagement by making the information relevant to employees' roles and responsibilities.
B: Appropriateness to Culture:Aligning the communication format with the organization's culture ensures clarity and resonance.
C: Visibility:Disseminating communication broadly reinforces its significance and encourages widespread participation.
Why All Options are Correct:
Fraud risk assessments require buy-in and participation across all levels of the organization. Combining personalization, cultural alignment, and visibility creates an effective communication strategy.
Conclusion:All three practices-personalization, cultural appropriateness, and visibility-are critical for effective communication.
References:Best practices for fraud risk communication as outlined in ACFE fraud risk management guides.

Proactive Fraud Auditing Procedures:
Analytical reviews are effective for identifying large or unusual trends and anomalies, not necessarily small frauds.
Other tools, such as detailed transaction testing, are better suited for uncovering small frauds.
Analysis of Other Options:
A: Element of surprise:A key feature of fraud audits.
C: Fraud assessment questioning:Valid as part of the audit process.
D: Management's intentions:Proactive procedures signal a strong stance against fraud.
Conclusion:Option B is false because analytical reviews are better at detecting significant anomalies rather than small frauds.
References:ACFE materials on fraud auditing techniques.