Free ACFE CFE-Fraud-Prevention-and-Deterrence Exam Questions

Become ACFE Certified with updated CFE-Fraud-Prevention-and-Deterrence exam questions and correct answers

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Total 360 Questions | Updated On: Apr 28, 2026

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Question 1

Which of the following best describes available inventory (also known as inventory position)?

A : The amount of inventory on hand in excess of expected demand

B : The amount of inventory on hand plus the amount of inventory on order

C : The amount of inventory on order only

D : The amount of inventory on hand

Answer: B

Question 2

Which of the following statements is FALSE?

A : ntrols are not effective in preventing theft and fraud If those at risk do not know of their presence

B : t experts agree that it is harder to detect frauds than to prevent them

C : ucating employees about company hotlines and reporting programs increases their perception of detection

D : nducting covert audits is among the most effective fraud prevention methods

Answer: A

Question 3

Consistently punishing perpetrators can be an effective fraud prevention mechanism

A : True

B : False

Answer: A

Question 4

To reinforce an anti-fraud culture, it is BEST for an organization's management to:

A : Use a checklist of initiatives to ensure that all the elements of a strong corporate culture are in place.

B : Require senior leaders to follow the same ethics policies that are in place for all staff-level employees.

C : Discourage employees from questioning their immediate supervisor's actions or decisions if they have concerns.

D : Discipline any employees who publicly express their frustration regarding organizational policies.

Answer: B

Question 5

An effective system of anti-fraud controls

A : Fully eliminates the risk of fraud

B : Focuses more on detective controls than preventive controls

C : Focuses more on preventive controls than detective controls

D : Increases the perception that fraud will be detected

Answer: C

Page: 1 / 72

Total 360 Questions | Updated On: Apr 28, 2026

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