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ACFE CFE-Fraud-Prevention-and-Deterrence Q&A - in .pdf
- Exam Code: CFE-Fraud-Prevention-and-Deterrence
- Exam Name: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam
- Updated: Nov 03, 2026
- Q & A: 331 Questions and Answers
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ACFE CFE-Fraud-Prevention-and-Deterrence Q&A - Testing Engine
- Exam Code: CFE-Fraud-Prevention-and-Deterrence
- Exam Name: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam
- Updated: Nov 03, 2026
- Q & A: 331 Questions and Answers
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ACFE CFE-Fraud-Prevention-and-Deterrence Exam Syllabus Topics:
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Reference: https://www.acfe.com/details-exam-preparation.aspx
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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Sample Questions:
Question #1
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.
- A. True
- B. False
Correct Answer: A 🗳️
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Question #2
Which of the following Is FALSE regarding a fraud risk assessment?
- A. The designation of an area as being high risk does not conclusively mean that fraud is occurring there.
- B. The objective of the assessment is to provide an estimate of the organization ' s fraud losses.
- C. The assessment should be used to improve employee fraud awareness.
- D. The assessment team should consider how employees behave as part of Its assessment
Correct Answer: B 🗳️
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Question #3
Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?
- A. ISA 240 requires auditors to effectively educate the staff about the risk of fraud within the audited organization.
- B. ISA 240 creates requirements for the board of directors regarding the establishment of a holistic fraud risk management program.
- C. ISA 240 establishes auditors as being primarily responsible for implementing anti-fraud internal controls within an organization.
- D. ISA 240 provides guidance regarding the auditor ' s responsibility to consider fraud in an audit of financial statements.
Correct Answer: D 🗳️
Question #4
Which of the following is TRUE regarding proactive fraud auditing procedures?
- A. Implementing proactive fraud audit procedures demonstrates the organization ' s intention to aggressively look for possible fraudulent conduct.
- B. Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods.
- C. Fraud assessment Questioning techniques are most appropriately used when attempting to determine who might be responsible for a particular fraud scheme.
- D. Surprise audit procedures are an effective fraud detection mechanism, but they do not help prevent fraud
Correct Answer: A 🗳️
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Question #5
Patrick is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking his audit procedures, he discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Patrick ' s BEST response to these findings?
- A. Patrick should not disclose his findings to any other parties due to client confidentiality
- B. Patrick should confront management with his audit findings and try to get a confession.
- C. Patrick should immediately report his findings to local law enforcement authorities.
- D. Patrick should report his findings to those charged with governance of the organization.
Correct Answer: D 🗳️
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