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 #37

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 #38

As part of its anti-fraud program, Elm Company is outlining the responsibilities of different stakeholders. Who is ultimately responsible for ensuring the effectiveness of the organization's anti- fraud program?

A. Internal auditors

B. Management

C. Forensic accountants

D. The compliance function

Discussion 0

Correct Answer: B Vote an answer

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Question #39

An employee who previously received excellent performance evaluations suddenly begins living far beyond known financial means. What should management consider?

A. The behavior proves fraud has occurred

B. The behavior is irrelevant to fraud risk

C. The employee should be terminated immediately

D. The behavior may represent a fraud red flag requiring further attention

Discussion 0

Correct Answer: D Vote an answer

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Question #40

During a fraud risk assessment, a manager argues that fraud risks should only be evaluated based on historical fraud incidents. What is the BEST response?

A. Agree because past fraud is the strongest predictor of future fraud

B. Exclude hypothetical fraud scenarios

C. Focus exclusively on areas with prior losses

D. Evaluate both existing and potential fraud risks, including risks not previously observed

Discussion 0

Correct Answer: D Vote an answer

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Question #41

Which of the following is NOT a purpose served by a professional organization's code of conduct?

A. It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles

B. It serves as a reference and benchmark for ethical guidance

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

D. It facilitates practical enforcement and profession-wide Internal discipline.

Discussion 0

Correct Answer: C Vote an answer

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Question #42

Reputational damage is an indirect cost of fraud that can be difficult for organizations to calculate.

A. False

B. True

Discussion 0

Correct Answer: B Vote an answer

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Question #43

Which of the following statements is MOST ACCURATE regarding best practices that organizations can take to protect and support whistleblowers?

A. Organizations should include in their whistleblower policies the specific penalties that people might encounter for refusing to report known misconduct.

B. Organizations should implement a clear whistleblower policy that lists every type of misconduct that has ever been reported at the company.

C. Organizations should publicize their whistleblower policies and procedures to individuals both inside and outside of the organization.

D. Organizations should emphasize that rules regarding whistleblower protections are only intended for lower-level employees who might be more vulnerable to retaliation.

Discussion 0

Correct Answer: C Vote an answer

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Question #44

A company implements a fraud hotline but does not allow anonymous reporting. What is the MOST likely consequence?

A. Reduced employee concerns about retaliation

B. Elimination of false allegations

C. Fewer tips and reduced reporting effectiveness

D. Increased reporting rates

Discussion 0

Correct Answer: C Vote an answer

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Question #45

Which of the following criminological theories states that individuals make a conscious decision to commit a crime and that crime can be deterred by reducing opportunities for criminal activity and increasing an individual's personal risk of being caught and punished?

A. Social conflict theory

B. Differential association theory

C. Routine activities theory

D. Rational choice theory

Discussion 0

Correct Answer: D Vote an answer

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