Free ACFE CFE-Fraud-Prevention-and-Deterrence Actual Exam Questions
The questions for this exam were last updated on January 7, 2026
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Question No. 1
[Fraud Prevention]
Reporting known incidents of fraud to law enforcement can be an effective fraud prevention
mechanism.
Reporting known incidents of fraud to law enforcement can be an effective fraud prevention
mechanism.
Select one option, then reveal solution.
Question No. 2
[Fraud Deterrence]
In the area of criminological theory, compliance is the theory that tries to prevent crime by providing
economic incentives for voluntary conformity to the laws and using administrative efforts to control
violations before they occur.
In the area of criminological theory, compliance is the theory that tries to prevent crime by providing
economic incentives for voluntary conformity to the laws and using administrative efforts to control
violations before they occur.
Select one option, then reveal solution.
Question No. 3
[Fraud Risk Management]
A report by a fraud examiner is privileged from disclosure by anyone other than the client.
A report by a fraud examiner is privileged from disclosure by anyone other than the client.
Select one option, then reveal solution.
Question No. 4
[Ethical Responsibilities of the Fraud Examiner]
Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but It allows
exceptions for unknowing violations of the law.
Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but It allows
exceptions for unknowing violations of the law.
Select one option, then reveal solution.
Question No. 5
[Fraud Risk Management]
Willow, Inc. has a complex organizational structure with many specialized departments. The structure
of Willow, Inc. increases the likelihood that fraud will go undetected within the organization.
Willow, Inc. has a complex organizational structure with many specialized departments. The structure
of Willow, Inc. increases the likelihood that fraud will go undetected within the organization.
Select one option, then reveal solution.
Question No. 6
[Ethical Responsibilities of the Fraud Examiner]
Benjamin, a Certified Fraud Examiner (CFE). was contacted regarding an engagement to investigate a
complex money laundering case spanning numerous international jurisdictions and involving
multiple cutting-edge technologies. Benjamin had previously attended a seminar on investigating
money laundering schemes, but he had no other training or experience in such cases. However, he
accepted the engagement and chose to conduct the work himself. Benjamin's conduct would likely
be a violation of the ACFE Code of Professional Ethics.
Benjamin, a Certified Fraud Examiner (CFE). was contacted regarding an engagement to investigate a
complex money laundering case spanning numerous international jurisdictions and involving
multiple cutting-edge technologies. Benjamin had previously attended a seminar on investigating
money laundering schemes, but he had no other training or experience in such cases. However, he
accepted the engagement and chose to conduct the work himself. Benjamin's conduct would likely
be a violation of the ACFE Code of Professional Ethics.
Select one option, then reveal solution.
Question No. 7
[Fraud Deterrence]
According to the differential reinforcement theory, behavior is weakened when positive rewards are
gained or punishment is avoided.
According to the differential reinforcement theory, behavior is weakened when positive rewards are
gained or punishment is avoided.
Select one option, then reveal solution.
Question No. 8
[Fraud Risk Management]
For Its compliance program to be effective, an organization must perform procedures to ensure
management hires only ethical Individuals who exercise a substantial measure of discretion In acting
on the organization's behalf
For Its compliance program to be effective, an organization must perform procedures to ensure
management hires only ethical Individuals who exercise a substantial measure of discretion In acting
on the organization's behalf
Select one option, then reveal solution.
Question No. 9
[Ethical Responsibilities of the Fraud Examiner]
While, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination She did not find
fraud, but. In White's opinion, there were several internal control deficiencies that, if not
remediated, could facilitate the occurrence of fraud Under the ACFE Code of Professional Ethics.
White may include her opinion on the controls in her report to management.
While, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination She did not find
fraud, but. In White's opinion, there were several internal control deficiencies that, if not
remediated, could facilitate the occurrence of fraud Under the ACFE Code of Professional Ethics.
White may include her opinion on the controls in her report to management.
Select one option, then reveal solution.
Question No. 10
[Ethical Responsibilities of the Fraud Examiner]
Jane, a Certified Fraud Examiner (CFE), was hired lo conduct a fraud examination at XYZ Company
Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring
Consequently. XYZ's management asked Jane to state in her official examination report that the
company is free of fraud as a means of assuring the board of directors that the company's anti-fraud
controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with
management's request.
Jane, a Certified Fraud Examiner (CFE), was hired lo conduct a fraud examination at XYZ Company
Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring
Consequently. XYZ's management asked Jane to state in her official examination report that the
company is free of fraud as a means of assuring the board of directors that the company's anti-fraud
controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with
management's request.
Select one option, then reveal solution.
Question No. 11
[Fraud Prevention]
Consistently punishing perpetrators can be an effective fraud prevention mechanism
Consistently punishing perpetrators can be an effective fraud prevention mechanism
Select one option, then reveal solution.
Question No. 12
[Fraud Deterrence]
Professional auditing standards suggest that auditors incorporate an "element of predictability" in
the selection of auditing procedures to be performed so that they ensure the same areas are tested
in the same manner during each audit.
Professional auditing standards suggest that auditors incorporate an "element of predictability" in
the selection of auditing procedures to be performed so that they ensure the same areas are tested
in the same manner during each audit.
Select one option, then reveal solution.
Question No. 13
[Fraud Risk Management]
Having specialized departments within a company often increases the overall risk ot traud by the
organization.
Having specialized departments within a company often increases the overall risk ot traud by the
organization.
Select one option, then reveal solution.
Question No. 14
[Fraud Deterrence]
Professional auditing standards require that auditors incorporate an "element of unpredictability" in
the selection of auditing procedures to be performed.
Professional auditing standards require that auditors incorporate an "element of unpredictability" in
the selection of auditing procedures to be performed.
Select one option, then reveal solution.
Question No. 15
[Fraud Risk Management]
According to Silk and Vogel's research, business leaders rationalize legal violations by asserting that
compliance with government regulations is too costly and cuts too heavily into company profits.
According to Silk and Vogel's research, business leaders rationalize legal violations by asserting that
compliance with government regulations is too costly and cuts too heavily into company profits.
Select one option, then reveal solution.