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: Jun 16, 2026

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Question 1

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

Question 2

The objective of anti-fraud controls is to:

A : Completely eliminate inherent fraud risk.

B : Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.

C : Completely eliminate residual fraud risk

D : Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk

Answer: D

Question 3

According to professional auditing standards, auditors should do which of the following as part of addressing the assessed risks of material misstatement due to fraud in the financial statements?

A : Incorporate an element of predictability in the selection of auditing procedures to be performed

B : Consider the knowledge, skill, and ability levels of the individuals who are assigned significant audit responsibilities

C : Disregard the entity's selection and application of accounting policies concerning complex transactions

D : All of the above

Answer: B

Question 4

Which of the following is a best practice when assembling a fraud risk assessment team?

A : Team members should all have similar skills and perspectives.

B : The size of the team should be limited to four individuals.

C : The team should include only external sources.

D : Team members should have experience in eliciting information.

Answer: D

Question 5

Which of the following components of the Committee of Sponsoring Organizations of the TreadwayCommission’s (COSO) Enterprise Risk Management—Integrating with Strategy and Performance refers to anorganization’s ability to continually assess how well its enterprise risk management (ERM) capabilities andpractices have increased value over time and how they will continue to drive value for the organization?

A : Risk tolerance

B : Governance and culture

C : Strategy and objective-setting

D : Review and revision

Answer: D

Page: 1 / 72

Total 360 Questions | Updated On: Jun 16, 2026

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