ACFE CFE-Fraud-Prevention-and-Deterrence Actual Free Exam Questions & Community Discussion

Exam Code/Number: CFE-Fraud-Prevention-and-Deterrence
Exam Name/Title: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam
Certification Provider: ACFE
Corresponding Certification: Certified Fraud Examiner

Exam Questions: 285
Updated On: Jun 03, 2026

Question #37

Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?

A. ISA 240 creates requirements for management regarding the establishment of a holistic fraud risk management program.

B. ISA 240 requires auditors to effectively raise awareness about the risk of fraud within the audited organization.

C. ISA 240 establishes standards regarding the auditor ' s responsibility to consider fraud in an audit of financial statements.

D. ISA 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization.

Discussion 0

Correct Answer: C Vote an answer

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Question #38

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

A. Accepting an assignment to secretly infiltrate the fraud examiner ' s employing organization and transmit inside information to another party

B. Accepting an assignment to evaluate the anti-fraud controls at an organization in which the fraud examiner is a shareholder, provided the fraud examiner ' s ownership interest is disclosed

C. Undertaking engagements for both sides in a case of alleged vendor overbilling

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

Discussion 0

Correct Answer: B Vote an answer

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Question #39

Which of the following is NOT one of the three elements that have the most influence on crime according to the routine activities theory?

A. The lack of societal ethics

B. The absence of capable guardians

C. The availability of suitable targets

D. The presence of motivated offenders

Discussion 0

Correct Answer: A Vote an answer

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Question #40

In Ihe context of fraud examination, integrity requires all of the following EXCEPT:

A. Independence of mental attitude

B. An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong

C. Subordination of desires for personal gain to the interests of clients, employers, and the public

D. Avoidance of differences of opinion

Discussion 0

Correct Answer: D Vote an answer

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Question #41

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

A. Independent monitoring

B. Risk tolerance

C. Governance and culture

D. Operating environment

Discussion 0

Correct Answer: C Vote an answer

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Question #42

Employee support programs are a fraud prevention mechanism that addresses which leg of the Fraud Triangle

A. Lack of integrity

B. Rationalization

C. Pressure

D. Opportunity

Discussion 0

Correct Answer: C Vote an answer

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Question #43

According to the differential reinforcement theory, behavior is strengthened when which of the following is applied?

A. Punishment

B. Loss of reward

C. Positive reinforcement

D. Negative stimuli

Discussion 0

Correct Answer: C Vote an answer

Question #44

Based on research regarding the criminogenic tendencies of organizations, employees are more likely to engage in fraudulent behavior when given a direct order to do so by a superior due to an inherent desire to obey people in positions of authority.

A. True

B. False

Discussion 0

Correct Answer: A Vote an answer

Question #45

Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.

A. True

B. False

Discussion 0

Correct Answer: A Vote an answer

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