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 #19

Which of the following is NOT one of the three general approaches used to control corporate crime?

A. Voluntary changes in corporate attitudes and structure

B. Strong intervention of the government

C. Consumer action to force change

D. Media blacklisting of the organization

Discussion 0

Correct Answer: D Vote an answer

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Question #20

A professional organization's code of conduct serves which of the following purposes?

A. It functions as a reference and benchmark for ethical guidance.

B. It acts as a substitute for legal and regulatory requirements that apply to the profession.

C. It replaces the need for individuals to consult their own principles.

D. It offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.

Discussion 0

Correct Answer: A Vote an answer

Question #21

Christopher is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While conducting his audit procedures, he discovers evidence of a fraud involving Jeffrey, the company's chief executive officer. Which of the following is Christopher's BEST response to these findings?

A. Christopher should immediately report his findings to the relevant government authority.

B. Christopher should confront Jeffrey with his audit findings and try to get a confession.

C. Christopher should not disclose his findings to any other parties due to legal liability.

D. Christopher should report his findings to those charged with governance of the organization.

Discussion 0

Correct Answer: D Vote an answer

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Question #22

Which of the following statements regarding monitoring employees for warning signs of fraud is MOST ACCURATE?

A. An increase in employee wealth is always a sign of fraud that should be investigated.

B. Managers should be instructed that it is a violation of employee privacy rights to monitor employees for behaviors that are indicative of fraud.

C. Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.

D. Employees should be made aware that management is watching for unexplained lifestyle and behavioral changes that might indicate fraudulent conduct.

Discussion 0

Correct Answer: D Vote an answer

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Question #23

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

A. The program must include mechanisms to monitor and identify breaches in compliance.

B. Formal sanctions for intentional noncompliance should be well-publicized throughout the company

C. There should be measures in place to address failures in the design or operation of anti-fraud controls, as well as fraud occurrences

D. The responsibility of handling suspected incidents of noncompliance should be delegated to someone outside of the company.

Discussion 0

Correct Answer: D Vote an answer

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Question #24

Which of the following is LEAST LIKELY to be a factor that directors and management should consider when developing a corporate governance framework for an organization?

A. The organization's ethical environment

B. The organization's legal and regulatory environment

C. The organization's cultural environment

D. The organization's physical operating environment

Discussion 0

Correct Answer: D Vote an answer

Question #25

Daniela, an independent Certified Fraud Examiner (CFE), was hired by Charles, executive director of a nonprofit organization, to investigate a straightforward embezzlement case.
Duringthe investigation, Daniela learns that Charles is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Daniela should:

A. Tell the nonprofit's board of trustees about Charles

B. Not disclose the information about Charles.

C. Resign from the engagement.

D. Report Charles to law enforcement

Discussion 0

Correct Answer: A Vote an answer

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Question #26

Susannah Is conducting an external audit of a company In a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking her audit procedures, she discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Susannah's BEST response to these findings?

A. Susannah should report her findings to the audit committee of the board of directors.

B. Susannah should Immediately report her findings to the secunties regulators

C. Susannah should confront management with her audit findings and try to get a confession.

D. Susannah should not disclose her findings to any other parties due to client confidentiality.

Discussion 0

Correct Answer: A Vote an answer

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Question #27

Glenda. an internal auditor, and Brldgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies. Glenda has just been told that she will be the lead on the company's fraud risk assessment. During the fraud risk assessment. Glenda should:

A. Automatically designate the accounts receivable department as a high-risk area.

B. Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department.

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

D. Have someone else perform the fraud risk assessment work related to the accounts receivable department's activities.

Discussion 0

Correct Answer: D Vote an answer

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