Free ACFE CFE-Fraud-Prevention Practice Test & Real Exam Questions

Exam Code/Number: CFE-Fraud-Prevention
Exam Name/Title: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam
Certification Provider: ACFE
Corresponding Certification: Certified Fraud Examiner

Exam Questions: 286
Updated On: Jul 07, 2026

Question #91

Jacques, an internal auditor, and Brenna, the company's travel and expense manager, have had several disagreements about employee expense limits and policies. Jacques has just been told that he will lead the company's fraud risk assessment. During the fraud risk assessment, Jacques should:

A. Include his disagreements with Brenna as a factor when assessing the risk of fraud in the employee travel and expense function.

B. Request that someone else perform the fraud risk assessment work related to employee travel and expenses.

C. Confront Brenna about the disagreements and discuss how they increase the organization's risk of fraud.

D. Automatically designate the employee travel and expense function as a high-risk area.

Discussion 0

Correct Answer: B Vote an answer

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Question #92

Which of the following statements regarding recommended vendor due diligence procedures is MOST ACCURATE?

A. An organization should subject vendors to an internal audit conducted by the organization's own auditors before agreeing to do business with them.

B. An organization should request that new vendors fill out a questionnaire about their background immediately after signing a contract with them.

C. An organization should avoid revealing that it is seeking information about potential vendors prior to starting a relationship with them.

D. An organization should include a clause in the contract requiring the vendor to report any misconduct before entering into an agreement with them.

Discussion 0

Correct Answer: D Vote an answer

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Question #93

The internal auditor's fraud-related responsibilities include which of the following?

A. Evaluating indicators of fraud and deciding whether any further action is necessary or whether an investigation should be recommended

B. Overseeing management's actions to manage fraud risks

C. Establishing and maintaining effective anti-fraud controls at a reasonable cost

D. Obtaining reasonable assurance that the organization's financial statements are free of material misstatements caused by fraud

Discussion 0

Correct Answer: A Vote an answer

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Question #94

Criminologist Charles McCaghy has stated that regulatory pressure is the single most compelling factor behind deviance by organizations.

A. False

B. True

Discussion 0

Correct Answer: B Vote an answer

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Question #95

Mary is charged with implementing a fraud reporting program on behalf of her organization.
Which of the following is a best practice that Mary should follow to ensure that the program is successful?

A. Mary should inform employees of the precise methods for reporting potential fraud, such as completing an online form.

B. Mary should inform employees that they will be held accountable for reporting tips that cannot be verified.

C. Mary should inform employees that the names of all individuals who report misconduct will be shared with the organization's governing body and law enforcement.

D. Mary should inform employees that they are required to report any information about potential fraud directly and only to their immediate supervisor.

Discussion 0

Correct Answer: A Vote an answer

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Question #96

Which of the following statements regarding recommended vendor due diligence procedures is MOST ACCURATE?

A. An organization should perform audits of potential vendors before agreeing to conduct business with them.

B. An organization should request that new vendors complete a questionnaire about their background immediately after signing a contract with them.

C. An organization should avoid revealing that it is seeking information about potential vendors prior to starting its relationship with them.

D. An organization should ensure that vendors have their own ethics and compliance program before engaging in any transactions with them.

Discussion 0

Correct Answer: D Vote an answer

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Question #97

A company discovers that several employees share login credentials to approve transactions.
What is the PRIMARY fraud risk?

A. Improved operational efficiency

B. Loss of accountability and inability to determine responsibility

C. Stronger segregation of duties

D. Reduced audit costs

Discussion 0

Correct Answer: B Vote an answer

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Question #98

Sycamore Inc. has a simple organizational structure with few specialized departments. The structure of Sycamore Inc. increases the likelihood that fraud will go undetected within the organization.

A. False

B. True

Discussion 0

Correct Answer: B Vote an answer

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Question #99

According to the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control-integrated Framework (the Framework), there are five interrelated components of a company's internal control. Which of the following is NOT among these five components?

A. Control environment

B. Independent oversight

C. Monitoring

D. Information and communication

Discussion 0

Correct Answer: B Vote an answer

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