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

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

Page: 1 / 72

Total 360 Questions | Updated On: Aug 20, 2026

Add To Cart

Question 1

Blue. Inc. is a specialty retailer of customized shipping containers. The company receives a very large order from Green Company, a new customer from a country that is known to have high corruption risks. Which of the following is MOST ACCURATE regarding the due diligence procedures Blue should perform on Green before proceeding with this transaction?

A : ue should consider Green's expected purchasing pattern and method of payment in determining whether to accept the transaction.

B : ue only needs to undertake due diligence procedures if Green is requesting to pay on credit.

C : ue should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination.

D : ue does not need to undertake any specific due diligence procedures for this transaction.

Answer: A

Question 2

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines____________ as"a process, effected by an entity's board of directors, management, andother personnel, designed to providereasonable assurance regarding the achievement of objectives relating to operations, reporting, andcompliance."

A : Corporate compliance

B : Fraud risk management

C : Risk assessment

D : Internal control

Answer: D

Question 3

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 4

Which of the following best defines ‘exponential moving average’?

A : A process by which the reorder of an item is triggered by the inventory level dropping to a predetermined level

B : A forecasting technique where the average is calculated by dividing the sum of the values by the number of values

C : A forecasting technique where each demand is multiplied by a weighting factor

D : A process by which a decision is taken at a period end or review point to determine how much to reorder

Answer: C

Question 5

Which of the following is TRUE regarding the communication of the fraud risk assessment process?

A : The more personalized the communication, the more effective it will be in encouraging employees to participate

B : The communication should be made in a format mat is most appropriate for the culture of the organization

C : The communication should be visibly disseminated throughout the business

D : All of the above

Answer: D

Page: 1 / 72

Total 360 Questions | Updated On: Aug 20, 2026

Add To Cart