Exam Name: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam
Certification Provider: ACFE
Corresponding Certification: Certified Fraud Examiner
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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Fraud Prevention Framework | 25% | - Fraud risk assessment processes - Fraud risk governance and oversight |
| Topic 2: Fraud Risk Management and Deterrence | 25% | - Monitoring and continuous improvement - Fraud prevention strategies and programs |
| Topic 3: Internal Controls and Fraud Prevention | 25% | - Internal control design and effectiveness - Fraud detection and prevention controls |
| Topic 4: Corporate Governance and Ethics | 25% | - Code of conduct and compliance programs - Ethical culture and tone at the top |
ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:
Which of the following is a TRUE statement regarding the role of a well-designed organizational structure within an anti-fraud program?
- A. It is best to avoid formally documenting organizational structures to limit fraudsters' ability to circumvent oversight controls.
- B. A confused organizational structure makes it harder for a fraudster to perpetrate and conceal their misdeeds.
- C. Flowcharts displaying departmental structures can be a helpful tool in communicating the proper flow of information as part of fraud prevention efforts.
- D. Communicating the proper flow of information to everyone in the organization can increase the organization's vulnerability to fraud.
Correct Answer: C 🗳️
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.
Correct Answer: D 🗳️
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A manager intentionally overrides purchasing controls to expedite a legitimate emergency purchase. Which statement is MOST accurate?
- A. Override automatically strengthens controls
- B. Management override always constitutes fraud
- C. Emergency situations eliminate control concerns
- D. Management override can create risk even when the underlying purpose is legitimate
Correct Answer: D 🗳️
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Which of the following statements is MOST ACCURATE regarding an effective system of anti- fraud controls?
- A. It deters fraudsters by increasing the perception that fraud will be detected.
- B. It focuses more on preventive controls than detective controls.
- C. It fully eliminates the risk of fraud by removing opportunities for misbehavior.
- D. It prioritizes implementing detective controls over preventive controls.
Correct Answer: A 🗳️
Which of the following scenarios is LEAST LIKELY to be considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics?
- A. Karen accepts an assignment to search for fraud indicators at an organization in which she is an undisclosed partner.
- B. Lori accepts an assignment to infiltrate her employer and transmit inside information to a competitor.
- C. Ren undertakes an external engagement that requires him to work outside the normal work hours of his primary employer.
- D. DeVon undertakes engagements for both sides in a case of an alleged fraudulent warranty scheme.
Correct Answer: C 🗳️
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