ACFE CFE Exam - Topic 3 Question 89 Discussion

Actual exam question for ACFE's CFE exam

Question #: 89
Topic #: 3

[All CFE Questions]

Which of the following is NOT the reason why senior management will overstate business statement?

AComply with debit covenants

BMeet personal performance criteria

CTrigger performance related compensation

DShow a pattern of growth to support sale of a business

Show Suggested Answer

Suggested Answer: A

by Amie at Apr 03, 2026, 04:55 AM

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Makeda

10 days ago

I remember discussing how performance-related compensation can drive overstating, so I think C might not be the answer. But I’m not completely confident.

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Geoffrey

15 days ago

I'm a bit confused here. I thought all these options could lead to overstating, but maybe B is the least likely?

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Lashaunda

20 days ago

I feel like this question is similar to one we practiced on financial manipulation. I want to say D could be the right choice since it seems more about perception than actual performance.

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Honey

25 days ago

I think the answer might be A, but I'm not entirely sure. I remember something about debt covenants being more about compliance than overstating.

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