ACFE : CFE-Fraud-Prevention Questions & Answers

Updated: Aug 05, 2026

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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Fraud Prevention Programs15–20%- Designing prevention strategies
- Communication and training
- Monitoring and continuous improvement
Topic 2: Corporate Governance20–25%- Governance frameworks and principles
  • 1. Treadway Commission (COSO)
    • 2. OECD guidelines
      - Internal control systems
      • 1. COSO five components
        - Roles of board, management, auditors
        Topic 3: Understanding Criminal Behavior5–10%- Behavior modification principles
        - Theories of crime causation
        • 1. Social control and social learning theory
        • 2. Differential association theory
        • 3. Rational choice and routine activities theory
        Topic 4: Fraud Risk Assessment15–20%- Risk identification methodologies
        - Assessment implementation and documentation
        - Risk analysis and prioritization
        Topic 5: Professional Ethics5–10%- ACFE Code of Professional Ethics
        - Conflicts of interest and integrity
        - Ethical decision-making
        Topic 6: White-Collar Crime15–20%- Organizational vs occupational crime
        - Definition and characteristics
        - Causal factors and opportunity structures
        - Impact on organizations and society
        - Legal prosecution and sanctions
        Topic 7: Management's Fraud-Related Responsibilities5–10%- Reporting mechanisms
        - Oversight and accountability
        - Establishing anti-fraud policies

        ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:

        1. Maria conducted a fraud examination that led to a valid confession of guilt from Rita. In Maria's verbal report to her superiors, she stated that, in her opinion. "Rita is guilty of embezzlement." Maria has just violated the ACFE Code of Professional Ethics.

        A) True
        B) False


        2. An organization discovers that a purchasing manager approved contracts for a vendor secretly owned by a close friend. The manager did not receive any payments. Which fraud risk is MOST relevant?

        A) Financial statement fraud
        B) Conflict of interest
        C) Payroll fraud
        D) Cash larceny


        3. 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.

        A) True
        B) False


        4. According to ACFE research, the most common method for detecting occupational fraud is:

        A) External audit
        B) Tips
        C) Management review
        D) Internal audit


        5. Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

        A) Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file.
        Susan complied with the court order, even though she did not have the client's authorization to do so.
        B) Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.
        C) Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.
        D) All of the above are violations


        Solutions:

        Question # 1
        Answer: A
        Question # 2
        Answer: B
        Question # 3
        Answer: A
        Question # 4
        Answer: B
        Question # 5
        Answer: D

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