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 #46

Which of the following Is NOT Included In Ihe five fraud risk management principles described In Fraud Risk Management Guide, a joint publication by COSO and the ACFE?

A. Developing one-time evaluations for each fraud risk management principle

B. Communicating the expectations of those governing the fraud risk management program

C. Performing comprehensive fraud risk assessments to identify specific fraud schemes

D. Deploying preventive and detective fraud control activities to mitigate fraud risk

Discussion 0

Correct Answer: A Vote an answer

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Question #47

Which of the following is TRUE regarding a background check policy for employees?

A. As part of the screening process, management should contact the personal and professional references provided by the job candidate only if they are unsure whether the candidate is being honest.

B. If a background check was conducted on an employee at the time of hire, then there is no need for management to conduct additional background checks on that employee during their employment.

C. Management should perform a background check on any candidate who will have access to cash, checks, credit card numbers, or other items that are easily stolen.

D. When verifying past employment, management should only ask previous employers to verify the candidate's previous position and dates of employment.

Discussion 0

Correct Answer: C Vote an answer

Question #48

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

A. Tom, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss. A year later, he received a court order to provide the client's file to the ordering court. Tom complied with the court order, even though he did not have the client's authorization to do so.

B. All of the above are violations.

C. Rodrigo. a CFE. uncovered several material Internal control deficiencies unrelated to the Kickback scheme he was Investigating. In his final report to management. Rodrigo included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

D. Vivian, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she was in a hurry to complete the investigation, she overlooked key items of evidence and ended up failing to uncover a major fraud scheme.

Discussion 0

Correct Answer: B Vote an answer

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Question #49

According to professional auditing standards, auditors should do which of the following as part of addressing the assessed risks of material misstatement due to fraud in the financial statements?

A. Consider the knowledge, skill, and ability levels of the individuals who are assigned significant audit responsibilities

B. All of the above

C. Disregard the entity's selection and application of accounting policies concerning complex transactions

D. Incorporate an element of predictability in the selection of auditing procedures to be performed

Discussion 0

Correct Answer: D Vote an answer

Question #50

According to social control theory, which of the following questions are people MOST LIKELY to ask themselves when considering the possibility of violating the law?

A. "Will I lose my job if my actions are discovered?"

B. "What will my parents think if they find out?"

C. "How can I prevent someone from learning what I did?"

D. "How likely am I to be punished for this crime?"

Discussion 0

Correct Answer: B Vote an answer

Question #51

During the course of a fraud examination. While, an employee of the ABC Corp.. approaches Blue, a Certified Fraud Examiner (CFE), and tells Blue that she wishes to furnish information in confidence.
Blue also is employed by the ABC Corp. Blue should:

A. Tell White that she will try to keep the information as confidential as possible

B. Take White's request straight to ABC Corp.'s management

C. Agree that the information will be held in confidence, even though Blue knows it will not be

D. Not agree to the request for confidentiality

Discussion 0

Correct Answer: D Vote an answer

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Question #52

According to ACFE research, which of the following is the MOST COMMON method for detecting occupational fraud?

A. Tips

B. Document examination

C. Internal audit

D. Management review

Discussion 0

Correct Answer: A Vote an answer

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Question #53

Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?

A. They assert that a corporate governance framework should ensure the equitable treatment of all the organization's shareholders.

B. They are intended to be applicable in developed economies but not in emerging markets.

C. They state that a corporate governance framework should require disclosure of all financial information to the organization's investors.

D. They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.

Discussion 0

Correct Answer: A Vote an answer

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Question #54

Which of the following is one of the recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

A. A written charter for management

B. Adequate audit committee resources and authority

C. A mandatory independent compensation committee

D. Shareholder oversight of internal controls

Discussion 0

Correct Answer: B Vote an answer

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