ACFE CFE-Fraud-Prevention-and-Deterrence practice materials Questions Answers

Exam Code:
CFE-Fraud-Prevention-and-Deterrence
Exam Name:
Certified Fraud Examiner – Fraud Prevention and Deterrence Exam
Last Update:
Jun 01,2026

255 Questions Answers Verified by Experts!


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Page: 1 / 29
Total Questions: 141

Questions & Answers PDF

• Question 1

  

  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.

  • True
  • False

  Reveal Answer Answer: B Next Question

• Question 2

  

  Which of the following Is one of the components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management---Integrating with Strategy and Performance?

  • Independent monitoring
  • Operating environment
  • Risk tolerance
  • Governance and culture

  Reveal Answer Answer: A Next Question

• Question 3

  

  The theory of differential association is used frequently lo explain white-collar criminality. Which of the following is NOT one of the assertions or principles of differential association?

  • Criminal behavior is explained by an individual's general needs and values.
  • Criminal behavior is acquired through participation with intimate personal groups.
  • Criminal behavior is learned from other people in a process of communication.
  • Criminal behavior is learned using the same mechanisms as other learning

  Reveal Answer Answer: A Next Question

• Question 4

  

  Which of the following statements is FALSE regarding an organization's fraud risk management program?

  • The program must include mechanisms to address breaches in compliance.
  • The punishment for intentional noncompliance should be carried out in a consistent and firm manner.
  • Formal sanctions for intentional noncompliance should be determined and enacted privately
  • A specific individual or team should be designated as responsible for monitoring compliance with the program

  Reveal Answer Answer: C Next Question

• Question 5

  

  Which of the following statements is FALSE regarding an organization's fraud risk management program?

  • The program must include mechanisms to monitor and identify breaches in compliance.
  • The responsibility of handling suspected incidents of noncompliance should be delegated to someone outside of the company.
  • Formal sanctions for intentional noncompliance should be well-publicized throughout the company
  • There should be measures in place to address failures in the design or operation of anti-fraud controls, as well as fraud occurrences

  Reveal Answer Answer: B Next Question

• Question 6

  

  Which of the following is FALSE regarding a background check policy for employees?

  • When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.
  • At a minimum, management should conduct a background check on any candidate who will have constant access to cash, checks, and credit card numbers, or other easily stolen items.
  • Where permitted by law, management should run a background check on any existing employee who is being promoted to a position that includes access to sensitive or valuable company resources, even if a background check was run on the individual at the time of hire
  • As part of the screening process, management should contact the references provided by the job candidate.

  Reveal Answer Answer: A Next Question

• Question 7

  

  Which of the following statements regarding best practices that organizations can take to protect and support whistleblowers is MOST ACCURATE?

  • Organizations should emphasize that rules regarding whistleblower protections are only intended for lower level employees who might be more vulnerable to retaliation.
  • Organizations should implement a clear whistleblower policy that lists out every type of misconduct that has ever been reported at the company.
  • Organizations should publicize their whistleblower procedures internally but should avoid communicating any procedural information to parties outside of the organization.
  • Organizations should establish formal consequences that are to be imposed upon employees at the company who retaliate against a whistleblower.

  Reveal Answer Answer: D Next Question

• Question 8

  

  Gray, an independent Certified Fraud Examiner (CFE), was hired by Green, president of the ABC Corporation, to investigate allegations that one of ABC's employees is taking kickbacks. During the investigation. Gray teams that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:

  • Not disclose the information about Green.
  • Report Green to law enforcement
  • Tell the company's board of directors about Green.
  • Resign from the engagement

  Reveal Answer Answer: C Next Question

• Question 9

  

  Which principle of corporate governance pertains to the disclosure of all material matters that the shareholders need to make timely and informed decisions regarding their investment in the company?

  • Transparency
  • Fairness
  • Responsibility
  • Accountability

  Reveal Answer Answer: A Next Question

• Question 10

  

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

  • Accepting an assignment to secretly infiltrate the fraud examiner's employing organization and transmit inside information to another party
  • Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
  • 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
  • Undertaking engagements for both sides in a case of alleged vendor overbilling

  Reveal Answer Answer: C Next Question

Page: 1 / 29
Total Questions: 141

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