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ACFE CFE - Fraud Prevention Exam
Certified Fraudiner - Fraud Prevention (Page 3 )

Updated On: 9-Feb-2026
Page 3 of 30
PDF with 256 Questions

Which of the following Is FALSE regarding a fraud risk assessment?

  1. The assessment team should consider how employees behave as part of Its assessment
  2. The assessment should be used to improve employee fraud awareness.
  3. The designation of an area as being high risk does not conclusively mean that fraud is occurring there.
  4. The objective of the assessment is to provide an estimate of the organization's fraud losses.

Answer(s): D



During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization's reported revenue amount However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit.
Which of the following is TRUE regarding this situation?

  1. The auditors should reconsider the reliability of the audit evidence they have previously obtained.
  2. The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.
  3. The auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.
  4. The auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold

Answer(s): D



Which of the following is NOT a purpose served by a professional organization's code of conduct?

  1. It replaces the need for individuals to consult their own conscience.
  2. It facilitates practical enforcement and profession-wide Internal discipline.
  3. It serves as a reference and benchmark for ethical guidance
  4. It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles

Answer(s): A



Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

  1. Rodrigo. a CFE. uncovered several material Internal control deficiencies unrelated to the Kickback scheme he was Investigating. In his final report to management. Rodrigo included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.
  2. Vivian, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she was in a hurry to complete the investigation, she overlooked key items of evidence and ended up failing to uncover a major fraud scheme.
  3. Tom, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss. A year later, he received a court order to provide the client's file to the ordering court. Tom complied with the court order, even though he did not have the client's authorization to do so.
  4. All of the above are violations.

Answer(s): B



Who is ultimately responsible lor ensuring the effectiveness of the organization's anti-fraud program?

  1. Internal auditors
  2. The compliance function
  3. Management
  4. External auditors

Answer(s): C






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