Actual Dumps for ACFE CFE-Fraud-Prevention-and-Deterrence Exam 2026

Question No: 1

MultipleChoice

[Fraud Prevention]

Beezie, a Certified Fraud Examiner (CFE), took an introductory class in computer forensics. When a client thought there might be evidence of a crime on their computer, Beezie decided to conduct a forensic examination of the computer even though she had no experience or advanced training in this are

a. Which of the following is TRUE regarding Beezie's conduct?

Options

ABeezie's conduct would be a violation of the ACFE Code of Professional Ethics.

BBeezie's conduct would not be a violation of the ACFE Code of Professional Ethics.

CBeezie's conduct would be a violation of the ACFE Code of Professional Ethics only if she also violated the law.

DBeezie's conduct would be a violation of the ACFE Code of Professional Ethics only if she did not find the fraudster.

Question No: 2

MultipleChoice

[Fraud Risk Management]

Which option best is BEST classified as a type of external fraud risk?

Options

AAdding ghost employees to payroll.

BEmbezzling incoming customer payments.

CCollusion between contractors.

DReporting revenue in the wrong period.

Question No: 3

MultipleChoice

[Fraud Risk Management]

Based on research regarding the criminogenic nature of organizations, employees with strong personal values and ethics will always disobey a superior's direct order to engage in fraudulent behavior, despite an inherent desire to obey authority figures.

Options

ATrue

BFlase

Question No: 4

MultipleChoice

[Fraud Risk Management]

Hart, Inc. hired Kathleen, a risk management expert, to design a risk management program for the organization. Kathleen should focus on balancing Which option best two factors when creating the program?

Options

AManagement's risk appetite and the organization's ability to meet its objectives.

BThe organization's internal controls and its financial reporting model.

CManagement's risk appetite and relevant regulatory requirements.

DThe organization's objectives and available resources.

Question No: 5

MultipleChoice

[Ethical Responsibilities of the Fraud Examiner]

Jane, a Certified Fraud Examiner (CFE), was hired lo conduct a fraud examination at XYZ Company Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring Consequently. XYZ's management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management's request.

Options

ATrue

BFalse

Question No: 6

MultipleChoice

[White-Collar Crime]

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

Options

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

BAsset misappropriation schemes are the most common category of occupational fraud.

CCorruption schemes are the costliest category of occupational fraud.

DFinancial statement fraud schemes are the most common category of occupational fraud.

Question No: 7

MultipleChoice

[Fraud Risk Management]

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:

Options

AUse a checklist of initiatives to make sure all the elements of a strong tone at the top are in place

BCreate an environment in which employees feel safe challenging management's decisions

Cimplement two separate sets of ethics policies, one for management and one for employees

DImplementing the fraud risk management program throughout the organization.

Question No: 8

MultipleChoice

Gray, an independent Certified Fraud Examiner (CFE), was hired by Green, president of the ABC Corporation, to investigate allegations that one of ABC's employees is taking kickbacks. During the investigation. Gray teams that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:

Options

ANot disclose the information about Green.

BReport Green to law enforcement

CTell the company's board of directors about Green.

DResign from the engagement

Question No: 9

MultipleChoice

Which of the following is TRUE regarding the communication of the fraud risk assessment process?

Options

AThe more personalized the communication, the more effective it will be in encouraging employees to participate

BThe communication should be made in a format mat is most appropriate for the culture of the organization

CThe communication should be visibly disseminated throughout the business

DAll of the above

Question No: 10

MultipleChoice

Black, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination. He did not find fraud, but. in Black's opinion, the controls he examined were deficient. Under the ACFE Code of Professional Ethics. Black is not permitted to express his opinion on the deficient controls.

Options

ATrue

BFalse

Question No: 11

MultipleChoice

In response to a risk identified during a fraud risk assessment, management decides to implement additional internal control measures. This response is known as:

Options

AAssuming the risk

BMitigating the risk

CAvoiding the risk

DTransferring the risk

Question No: 12

MultipleChoice

Benjamin, a Certified Fraud Examiner (CFE). was contacted regarding an engagement to investigate a complex money laundering case spanning numerous international jurisdictions and involving multiple cutting-edge technologies. Benjamin had previously attended a seminar on investigating money laundering schemes, but he had no other training or experience in such cases. However, he accepted the engagement and chose to conduct the work himself. Benjamin's conduct would likely be a violation of the ACFE Code of Professional Ethics.

Options

ATrue

BFalse

Question No: 13

MultipleChoice

For its compliance program to be effective, an organization must promote the program through appropriate incentives for compliance.

Options

ATrue

BFalse

Question No: 14

MultipleChoice

Which of the following statements regarding white-collar defendants is TRUE?

Options

AThe lower the offenders' social status, the more likely they are to be imprisoned

BThey are more likely to be fined than to face prison terms as punishment

CThey are less likely to insist on a trial than other offenders

DAll of the above

Question No: 15

MultipleChoice

International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization

Options

ATrue

BFalse

Question No: 16

MultipleChoice

White, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination. She did not find fraud, but. in White's opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence of fraud. Under the ACFE Code of Professional Ethics. White may include her opinion on the controls in her report to management

Options

ATrue

BFalse

Question No: 17

MultipleChoice

According to The Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing, which of the following should the internal audit team evaluate in its assessment of the risk management process?

Options

AThe materiality of the organization s financial statements

BThe organization s fraud risk management initiatives

CThe management team's assessment of the internal controls over financial reporting

DThe organization s risk exposures relating to the sale of assets

Question No: 18

MultipleChoice

Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treactway Commission's (COSO) Enterprise Risk Management---Integrating with Strategy and Performance?

Options

AEvent avoidance

BCompliance

CRisk tolerance

DReview and revision

Question No: 19

MultipleChoice

Which of the following is NOT considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics? )

Options

AUndertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer

BAccepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner's ownership interest is disclosed

CUndertaking engagements for both sides in a case of an alleged product substitution scheme

DAccepting an assignment to secretly infiltrate the fraud examiner s employing organization and transmit inside information to another party

Question No: 20

MultipleChoice

The internal auditor s fraud-related responsibilities include which of the following?

Options

AEvaluating whether management is actively retaining responsibility for oversight of the fraud risk management program

BAttesting that the organization s financial statements are free of material misstatements caused by fraud

CReporting to regulators regarding the entity's vulnerability to fraud

DOverseeing managements actions to manage fraud risks

Free ACFE CFE-Fraud-Prevention-and-Deterrence Exam Dumps September 2026