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 #28

Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Smith to encourage his team members to keep their cash drawers in balance?

A. Take away an hour of paid time off for each time the drawer is over or short

B. Demote employees who continue to have reconciliation discrepancies

C. Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.

D. Publicly call out and criticize employees whose cash drawers are over or short.

Discussion 0

Correct Answer: C Vote an answer

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Question #29

Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To MOST EFFECTIVELY reinforce an anti-fraud culture, management should:

A. Use a checklist of initiatives to make sure all the elements of a strong tone at the lop are in place

B. Visibly adhere to the same set of ethics policies that is required of all employees

C. All of the above

D. Create an environment in which employees are dissuaded from challenging management's decisions

Discussion 0

Correct Answer: B Vote an answer

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Question #30

During a fraud risk assessment, the assessment team is seeking information on the ethical tone set by upper and middle managers. The team members determine that, for this task, they would like to get candid one-on-one feedback from employees away from their peers. Which of the following techniques would be most helpful for them to use in gathering this information?

A. Focus groups

B. Interviews

C. Anonymous feedback mechanisms

D. Surveys

Discussion 0

Correct Answer: B Vote an answer

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Question #31

Which of the following statements is TRUE according to rational choice theory?

A. Crime can be deterred by decreasing the personal risk to potential perpetrators.

B. Crime can be deterred by increasing the potential for financial gain for the perpetrator.

C. Crime originates from a rational and conscious decision made by the perpetrator in order to receive an intended benefit.

D. Crime originates from the application of excessive pressure and influence on the perpetrator by external sources.

Discussion 0

Correct Answer: C Vote an answer

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Question #32

Which of the following is BEST classified as a type of external fraud risk?

A. Reporting revenue in the wrong period

B. Embezzling incoming customer payments

C. Adding ghost employees to payroll

D. Collusion between contractors

Discussion 0

Correct Answer: D Vote an answer

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Question #33

Which of the following is one of the three general methods used to control corporate crime?

A. Demands from consumers to change

B. Loss of funding from financial institutions

C. Pressure from changes in the competitive environment

D. Lowered regulatory enforcement by the government

Discussion 0

Correct Answer: C Vote an answer

Question #34

According to ACFE research, which of the following is TRUE?

A. An unwillingness to share duties is the most reported red flag displayed by fraud perpetrators prior to the detection of their crime.

B. Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.

C. Most fraudsters have previous criminal convictions for fraud-related offenses.

D. Men commit significantly more frauds than women do.

Discussion 0

Correct Answer: A Vote an answer

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Question #35

According to International Organization for Standardization (ISO) 31000:2018, an organization's risk management program should be proportionate to the organization's specific operations and objectives.

A. False

B. True

Discussion 0

Correct Answer: B Vote an answer

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Question #36

Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

A. Support for establishing stronger protection for foreign shareholders than for domestic shareholders

B. Guidance regarding appropriate board structures, responsibilities, and procedures

C. A request that governments have in place an appropriate framework to support good corporate governance practices

D. Recognition of the importance of the role of stakeholders in corporate governance

Discussion 0

Correct Answer: A Vote an answer

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