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ACFE CFE-Fraud-Prevention-and-Deterrence Practice Test Questions Answers

Exam Code: CFE-Fraud-Prevention-and-Deterrence (Updated 255 Q&As with Explanation)
Exam Name: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam
Last Update: 31-Aug-2025
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Questions Include:

  • Single Choice: 255 Q&A's

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    Total Questions: 158
    Updated: 31-Aug-2025
    Total Questions: 186
    Updated: 31-Aug-2025

    CFE-Fraud-Prevention-and-Deterrence Questions and Answers

    Question # 1

    During a fraud risk assessment, the assessment team determines that it would like to observe the interactions among several employees as they collectively discuss the organization's current fraud awareness training. Which of the following techniques would be MOST HELPFUL for the team to use in gathering this information?

    A.

    Focus groups

    B.

    Surveys

    C.

    Anonymous feedback mechanisms

    D.

    Interviews

    Question # 2

    Po, a Certified Fraud Examiner (CFE), was hired to conduct a fraud examination. She did not find fraud, but in Po's opinion, there were several internal control deficiencies that, if not corrected, could facilitate the occurrence of fraud. Under the ACFE Code of Professional Ethics, which of the following is TRUE?

    A.

    Po may include her opinion on the internal controls in her report to management only if management agrees to compensate her for the addition.

    B.

    Po may include her opinion on the internal controls in her report to management because it is a technical matter.

    C.

    Po may include her opinion on the internal controls in her report to management only if she amends her contract.

    D.

    Po may not include her opinion on the internal controls in her report to management because that is not what she was hired to assess.

    Question # 3

    According to International Organization for Standardization (ISO) 31000:2018, an effective and efficient risk management program contains all of the following principles EXCEPT:

    A.

    The program takes human and cultural factors into account.

    B.

    The program is static and consistent, even during times of organizational change.

    C.

    The program facilitates continuous improvement.

    D.

    The program is customized and proportionate to the organization's operations and objectives.

    Question # 4

    Management at ABC Company wants to transfer one of the risks identified during the company's fraud risk assessment process. Which of the following actions would be MOST APPROPRIATE to support this response?

    A.

    Implementing additional preventive and detective controls

    B.

    Discontinuing the underlying activity completely

    C.

    Deciding not to implement any responsive measures

    D.

    Purchasing fidelity insurance to protect against the associated risk of loss

    Question # 5

    Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?

    A.

    Including ethics-based metrics as a component of performance evaluations

    B.

    Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks

    C.

    Establishing loosely defined job descriptions that allow employees flexibility in their roles

    D.

    Tying employee compensation to reasonable organizational performance goals

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