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 #82

According to ACFE research, which of the following is TRUE regarding the three major categories of occupational fraud?

A. Corruption schemes are the costliest category of occupational fraud.

B. Financial statement fraud schemes are the most common category of occupational fraud.

C. Identity theft is both the most common and costliest category of occupational fraud.

D. Asset misappropriation schemes are the most common category of occupational fraud.

Discussion 0

Correct Answer: D Vote an answer

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Question #83

Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?

A. Management should tailor the detailed objectives of the fraud risk management program to the organization's specific needs and goals.

B. Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program's effectiveness.

C. Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented tnem.

D. Management must balance the investment in anti-fraud controls with the benefit of those controls and the amount of risk it is willing to accept.

Discussion 0

Correct Answer: B Vote an answer

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Question #84

Which of the following mechanisms can help alleviate the pressure on employees to commit fraud?

A. Background check policies

B. Employee support programs

C. Discipline policies

D. Employee monitoring software

Discussion 0

Correct Answer: B Vote an answer

Question #85

In response to an employee's failure to meet performance expectations, a manager demotes the employee to a junior-level position. This is an example of what type of behavioral response?

A. Punishment

B. Positive reinforcement

C. None of the above

D. Negative reinforcement

Discussion 0

Correct Answer: A Vote an answer

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Question #86

According to ACFE research, which of the following is TRUE regarding prosecutions of white- collar criminals?

A. Only a small percentage of perpetrators are punished when an organization handles a fraud case internally.

B. The primary reason that organizations decline to prosecute fraud cases is a lack of evidence.

C. Most fraud cases are only handled internally and are not referred to law enforcement for prosecution.

D. The most common internal response to a substantiated fraud case is to terminate the employee.

Discussion 0

Correct Answer: D Vote an answer

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Question #87

Eliece, a Certified Fraud Examiner (CFE), and Jewel are employees at Silver Inc. Jewel informs Eliece that she has knowledge of a potential financial statement fraud but does not feel comfortable sharing this information unless Eliece can promise that she will keep it confidential.
How should Eliece respond?

A. Eliece should encourage Jewel to report the information to law enforcement because she cannot agree to Jewel's request.

B. Eliece should promise Jewel that she will keep the information confidential even though she knows that she will likely be unable to keep that promise.

C. Eliece should tell Jewel that she will try to keep the information as confidential as possible but she might have an ethical obligation to inform their employer.

D. Eliece should immediately contact management at Silver Inc. to provide information about her conversation with Jewel and her request for confidentiality.

Discussion 0

Correct Answer: C Vote an answer

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Question #88

Gregory, an internal auditor, and Brandon, the company's purchasing manager, have had several heated disagreements over purchasing procedures and policies. Gregory has just been told that he will be the lead on the company's fraud risk assessment. During the fraud risk assessment.
Gregory should:

A. Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.

B. Automatically designate the purchasing function as a high-risk area.

C. Have someone else perform the fraud risk assessment work related to the purchasing function

D. Confront Brandon about the disagreements and discuss how they increase the organization's risk of fraud-

Discussion 0

Correct Answer: A Vote an answer

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Question #89

According to criminologist Charles McCaghy, which of the following is the most compelling factor behind deviance by organizations?

A. Profit pressure

B. Executive failures

C. Excessive regulatory requirements

D. Unethical corporate culture

Discussion 0

Correct Answer: A Vote an answer

Question #90

Cho, an internal auditor, and Pierre, a sales manager, have had several disagreements about the sales tactics used by Pierre's team. Cho has just been told that she will lead the company's fraud risk assessment. During the fraud risk assessment, Cho should:

A. Include her disagreements with Pierre as a factor when assessing the risk of fraud in the sales function.

B. Confront Pierre about the disagreements and discuss how they increase the company's risk of fraud.

C. Automatically designate the sales function as a high-risk area.

D. Request that someone else perform the fraud risk assessment work that is related to the sales function's activities.

Discussion 0

Correct Answer: D Vote an answer

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