[2026] Pass CFE-Fraud-Prevention-and-Deterrence Exam – Real Questions & Answers [Q83-Q104]

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[2026] Pass CFE-Fraud-Prevention-and-Deterrence Exam – Real Questions and Answers

CFE-Fraud-Prevention-and-Deterrence Exam Questions Get Updated [2026] with Correct Answers

The ACFE CFE-Fraud-Prevention-and-Deterrence exam covers a wide range of topics related to fraud prevention and deterrence, including fraud risk management, fraud investigation, and the legal aspects of fraud. CFE-Fraud-Prevention-and-Deterrence exam is designed to test the candidate’s knowledge and understanding of these topics, as well as their ability to apply this knowledge in real-world situations. CFE-Fraud-Prevention-and-Deterrence exam is challenging and requires a significant amount of preparation and study.

NO.83 Which of the following is TRUE regarding the communication of the fraud risk assessment process?

The communication should be in the form of a personalized message from the assessment sponsor

The communication should actively encourage employees to participate in the assessment process

The communication should be visibly disseminated throughout the business

All of the above

NO.84 Black, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination. He did not find fraud, but. in Black’s opinion, the controls he examined were deficient. Under the ACFE Code of Professional Ethics. Black is not permitted to express his opinion on the deficient controls.

True

False

NO.85 Effectively documenting and communicating organizational hierarchies, including the proper flow of information, can be a helpful tool in preventing fraud

True

False

NO.86 As part of its anti-fraud program, Oak Company is outlining the responsibilities of different stakeholders.
Who is ultimately responsible for setting the organization’s ethical tone?

General counsel

Management

Fraud examiners

Human resources

NO.87 (Acme, Inc. is a publicly traded, multinational corporation. Which of the following statements is TRUE regarding the corporate governance requirements that Acme is subject to?)

Acme is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.

Acme is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions.

Acme must comply with all corporate governance-related legislation in every jurisdiction in which it operates.

Acme is required to comply only with the corporate governance standards adopted by the company’s board of directors.

NO.88 An effective system of anti-fraud controls

Fully eliminates the risk of fraud

Focuses more on detective controls than preventive controls

Focuses more on preventive controls than detective controls

Increases the perception that fraud will be detected

NO.89 According to the results of behavioral studies, such as those conducted by B. F. Skinner, application of punishment to undesired behavior typically results in which of the following?

increase in the occurrence of the undesired behavior

No effect on the occurrence of the undesired behavior

Temporary suppression of the undesired behavior

Permanent suppression of the undesired behavior

NO.90 Iris, a manager at Mega Corp., oversees fraud awareness training for the organization’s employees. When reviewing the training for the coming year, Iris should ensure that Mega Corp.’s employee anti-fraud education:

Includes examples of how fraud hurts Mega Corp. and its employees.

Is limited to the organization’s executives and focuses on their liability for fraud.

Is restricted to informal educational mechanisms such as company-wide newsletters.

Describes the specific internal controls that Mega Corp. uses to detect fraud.

NO.91 The internal auditor’s fraud-related responsibilities include which of the following?

Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program

Reporting to regulators regarding the entity’s vulnerability to fraud

Overseeing management’s actions to manage fraud risks

Attesting that the organization’s financial statements are free of material misstatements caused by fraud

NO.92 Which of the following is FALSE regarding a fraud risk assessment?

The objective of the assessment is to help the organization identify what makes it most vulnerable to fraud.

The assessment should be used to improve employee fraud awareness

The assessment team should consider how employees behave as part of its assessment

The designation of an area as high risk should only occur if the assessment has conclusively revealed that fraud is occurring there.

NO.93 Which of the following statements is FALSE regarding an organization’s fraud risk management program?

The program must include mechanisms to monitor and identify breaches in compliance.

The responsibility of handling suspected incidents of noncompliance should be delegated to someone outside of the company.

Formal sanctions for intentional noncompliance should be well-publicized throughout the company

There should be measures in place to address failures in the design or operation of anti-fraud controls, as well as fraud occurrences

NO.94 Which of the following statements regarding a fraud risk assessment is MOST ACCURATE?

One of the main objectives of a fraud risk assessment is to provide an estimate of the total amount of money that an organization has lost to fraud since it was first formed.

One of the main objectives of a fraud risk assessment is to determine the organization’s vulnerabilities to both internal and external fraud.

A fraud risk assessment should focus on evaluating only the entity-level fraud risk without regard to any specific individuals or positions within the organization.

A fraud risk assessment should focus on designating areas as high risk only if the team discovers conclusive evidence that fraud has occurred.

NO.95 Which of the following is TRUE regarding an organization s ethics program?

To be most effective, access to the organization s ethics policy should be restricted to employees and other internal parties only

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

An effective written ethics policy alone is sufficient to communicate managements ethical philosophy and serve as a comprehensive ethics program

All of the above

NO.96 Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?

Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented tnem.

Management must balance the investment in anti-fraud controls with the benefit of those controls and the amount of risk it is willing to accept.

Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program’s effectiveness.

Management should tailor the detailed objectives of the fraud risk management program to the organization’s specific needs and goals.

NO.97 The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines internal control as:

A process implemented to review how well the organization’s risk management capabilities have increased value over time and how they will continue to drive value for the organization.

A process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.

A process involving personnel at all levels of the organization that aims to eliminate all uncertainty and risk while also ensuring the effectiveness of the organization’s strategy.

A process aimed at proactively identifying, evaluating, and addressing an organization’s vulnerabilities to fraud by both internal and external sources.

NO.98 To reduce the probability of fraud in financial reports, the National Commission on Fraudulent Financial Reporting, also known as the Treadway Commission, made which of the following recommendations?

Appoint a mandatory independent finance committee.

Develop a written charter for the audit committee.

Assign oversight of the hotline reporting program to shareholders.

Provide adequate resources and authority to management.

NO.99 Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company’s cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.

Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor’s office to provide the client’s file. Susan complied with the court order, even though she did not have the client’s authorization to do so.

All of the above are violations

NO.100 Which of the following is one of the four recommendations made by the National Commission on Fraudulent Financial Reporting the Treadway Commission to reduce the probability of fraud in financial reports?

Have a mandatory independent compensation committee.

Develop a written charter for management.

Have adequate audit committee resources and authority.

Give shareholders oversight of internal controls.

NO.101 The generation and use of relevant, quality information to support the functioning of internal control is a principle related to which component of the Committee of Sponsoring Organizations of the Treadway Commissions (COSO) Internal Control-Integrated Framework (the Framework)?

Risk assessment

Control environment

Monitoring

Information and communication

NO.102 According to International Organization for Standardization (ISO) 31000:2018, an organization’s risk management program should be proportionate to the organization’s specific operations and objectives.

True

False

NO.103 Armando has been tasked with developing policies to help prevent crime by using the threat of criminal sanctions to control the immediate behavior of individuals. Which of the following strategies to control crime is Armando using?

Deterrence

Enforcement

Prevention

Compliance

NO.104 Maj, a Certified Fraud Examiner (CFE), engaged in an illegal activity but did not know that the activity was illegal. Which of the following statements about the ACFE Code of Professional Ethics is TRUE?

Maj’s conduct would be a violation of the ACFE Code of Professional Ethics regardless of the circumstances.

Maj’s conduct would not be a violation of the ACFE Code of Professional Ethics because the Code does not cover illegal activity.

Maj’s conduct would not be a violation of the ACFE Code of Professional Ethics because she did not know the activity was illegal.

Maj’s conduct would be a violation of the ACFE Code of Professional Ethics only if she is criminally convicted for her actions.