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: Dec 17, 2025

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Question 1

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 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

Which of the following is LEAST LIKELY to be a factor that directors and management should consider when developing a corporate governance framework for an organization?

A : The organization's cultural environment

B : The organization's legal and regulatory environment

C : The organization's physical operating environment

D : The organization's ethical environment

Answer: C

Question 4

In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:

A : The organization's incentive programs

B : The possibility of management's override of controls

C : Risks to the organization's reputation

D : All of the above

Answer: D

Question 5

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

Page: 1 / 72

Total 360 Questions | Updated On: Dec 17, 2025

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