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 13, 2026

Question #46

(Sloan, the internal audit manager for Elm, Inc., is working to formally incorporate the company's fraud risk assessment into its audit process. Which of the following is NOT a way that Elm's audit team should use the fraud risk assessment process and results as part of their audits?)

A. To determine areas where the auditors can reduce their awareness of indicators of fraud

B. To design audit procedures that will enable auditors to look for fraud in known areas of high risk

C. To deliver reports that incorporate the results of the auditors' validation and testing of the fraud risk controls

D. To map existing controls to the moderate-to-high fraud risks identified

Discussion 0

Correct Answer: A Vote an answer

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Question #47

Jones, an accounting manager for a software company, wants to improve her team ' s adherence to the company ' s formal accounting policies and procedures and reduce the number of process exceptions they experience. According to behaviorist theories, which of the following options would be the most effective way for Jones to condition her staff to follow the company ' s formal accounting processes?

A. Demote employees who do not adhere to the expected processes.

B. Offer a bonus to anyone who experiences no process exceptions for ninety days-

C. Publicly call out and criticize employees who deviate from the formal processes.

D. Take away a day of paid time off for each process exception.

Discussion 0

Correct Answer: B Vote an answer

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Question #48

Sycamore, Inc. has a simple organizational structure with few specialized departments. The structure of Sycamore, Inc. increases the likelihood that fraud will go undetected within the organization.

A. True

B. False

Discussion 0

Correct Answer: A Vote an answer

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Question #49

Who is ultimately responsible for responding appropriately to instances of fraud within an organization?

A. General counsel

B. Management

C. The audit committee

D. Internal auditors

Discussion 0

Correct Answer: B Vote an answer

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Question #50

Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

A. A request that governments have in place an appropriate framework to support good corporate governance practices

B. Support for establishing stronger protection for foreign shareholders than for domestic shareholders

C. Guidance regarding appropriate board structures, responsibilities, and procedures

D. Recognition of the importance of the role of stakeholders in corporate governance

Discussion 0

Correct Answer: B Vote an answer

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Question #51

Which of the following is TRUE regarding corporate governance?

A. Effective corporate governance practices are most necessary in an organization in which the owners are also the individuals responsible for setting the corporate strategy.

B. Fraud risk management is considered to be the foundation of effective corporate governance

C. Corporate governance ' s primary purpose is to ensure the accuracy of the organization ' s financial reports

D. An entity ' s corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization

Discussion 0

Correct Answer: D Vote an answer

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Question #52

(Which of the following factors has contributed to the rising problem of economic crime according to Crimes of the Middle Classes?)

A. The decrease in funds available from government assistance programs

B. The increased regulatory constraints on businesses

C. The economy's increased reliance on credit

D. Advertising's message that it is okay to settle for second best

Discussion 0

Correct Answer: C Vote an answer

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Question #53

Luis, the internal audit manager for Oak Corporation, is working to formally incorporate the company ' s fraud risk assessment into its audit process. Which of the following is NOT a way that Oak ' s audit team should use the fraud risk assessment process and results as part of their audits?

A. To validate whether the organization is appropriately managing moderate-to-high fraud risks.

B. To design audit tests to evaluate whether fraud risk controls are operating effectively.

C. To inform the development of audit programs for areas that have been identified as having a high risk of fraud.

D. To confirm whether there is conclusive evidence that fraud is occurring within the company.

Discussion 0

Correct Answer: D Vote an answer

Question #54

(Which of the following principles of corporate governance relates to ensuring that all stakeholders are treated equitably and are given just and appropriate consideration?)

A. Fairness

B. Responsibility

C. Transparency

D. Accountability

Discussion 0

Correct Answer: A Vote an answer

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