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

Smith, a retail sales manager, wants to decrease the level of cash register over-and-short discrepancies among his sales team. According to behaviorist theories, which of the following options would be the MOST EFFECTIVE way for Smith to encourage his team members to keep their cash drawers in balance?

A : Offer a bonus to anyone whose drawer reconciles perfectly for sixty days.

B : Publicly call out and criticize employees whose cash drawers are over or short.

C : Take away an hour of paid time off for each time the drawer is over or short

D : Demote employees who continue to have reconciliation discrepancies

Answer: A

Question 2

Employee anti-fraud education should:

A : Include descriptions of the procedures that management uses to detect fraud.

B : Include examples of prior employee misconduct and how those situations were handled.

C : Be restricted to formal educational mechanisms to reinforce the importance of the message.

D : Be presented by organizational executives or anti-fraud professionals only.

Answer: B

Question 3

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 4

Which of the following Is TRUE regarding an organization's ethics program?

A : To be most effective, access to the organization's ethics policy should be restricted to employees and other Internal parties only

B : In designing the ethics program, management should consider whether the organization currently has any ethical leadership Issues

C : An effective written ethics policy alone is sufficient to communicate management's ethical philosophy and serve as a comprehensive ethics program

D : All of the above

Answer: B

Question 5

Which of the following is TRUE regarding the internal audit function's reporting responsibilities pertaining to fraud?

A : The internal audit function should discuss how and when to report fraud-related issues with senior management and the board of directors before such issues arise.

B : The internal audit function is permitted, but not required, to periodically report about the organization's fraud risks to senior management and the board of directors.

C : The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence

D : The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.

Answer: A

Page: 1 / 72

Total 360 Questions | Updated On: Jun 16, 2026

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