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

Which one of the following statements is true about radio frequency identification (RFID)?

A : An active RFID tag does not require a power source

B : Normally passive RFID tags store ID numbers

C : A passive RFID tag does not use an antenna

D : RFID tags require laser scanning.

Answer: B

Question 2

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 3

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

Question 4

an is drafting a report containing the results of his company's fraud risk assessment process. To be MOST EFFECTIVE, Ian's report should:

A : Include a complete list of recommended actions for management to take to address all identified risks.

B : Focus on the findings that will make the most impact on the company's fraud risk management efforts.

C : Contain a detailed, comprehensive list of every assessment finding.

D : Reflect the assessment team's subjective perspective regarding the risks identified.

Answer: A

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: Dec 17, 2025

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