[Nov 04, 2026] 100% Real & Accurate CFE-Fraud-Prevention-and-Deterrence Questions with Free and Fast Updates [Q66-Q89]

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[Nov 04, 2026] 100% Real & Accurate CFE-Fraud-Prevention-and-Deterrence Questions with Free and Fast Updates

Self-Study Guide for Becoming an Certified Fraud Examiner – Fraud Prevention and Deterrence Exam Expert

ACFE CFE-Fraud-Prevention-and-Deterrence Exam Syllabus Topics:

Section	Objectives
Fraud Prevention and Deterrence	– Fraud Prevention Fundamentals 1. Principles of fraud prevention and deterrence 2. Objectives of anti-fraud programs – Fraud Schemes and Red Flags 1. Occupational fraud schemes 2. Fraud warning signs and red flags 3. Financial statement fraud indicators – Fraud Culture and Ethics 1. Whistleblowing mechanisms and reporting channels 2. Ethical frameworks and professional standards 3. Anti-fraud organizational culture – Anti-Fraud Controls and Governance 1. Internal controls to deter fraud 2. Corporate governance and oversight 3. Fraud prevention policies and procedures – Fraud Risk Monitoring and Evaluation 1. Ongoing monitoring of fraud risks 2. Evaluation of fraud prevention programs – Fraud Risk Management 1. Fraud risk identification and analysis 2. Fraud risk assessment process 3. Fraud risk mitigation strategies

Section

Objectives

Fraud Prevention and Deterrence

– Fraud Prevention Fundamentals

1. Principles of fraud prevention and deterrence
2. Objectives of anti-fraud programs

– Fraud Schemes and Red Flags

1. Occupational fraud schemes
2. Fraud warning signs and red flags
3. Financial statement fraud indicators

– Fraud Culture and Ethics

1. Whistleblowing mechanisms and reporting channels
2. Ethical frameworks and professional standards
3. Anti-fraud organizational culture

– Anti-Fraud Controls and Governance

1. Internal controls to deter fraud
2. Corporate governance and oversight
3. Fraud prevention policies and procedures

– Fraud Risk Monitoring and Evaluation

1. Ongoing monitoring of fraud risks
2. Evaluation of fraud prevention programs

– Fraud Risk Management

1. Fraud risk identification and analysis
2. Fraud risk assessment process
3. Fraud risk mitigation strategies

Q66. Which of the following criminological theories asserts that the three elements that have the most influence on crime are the availability of suitable targets, absence of capable guardians, and presence of motivated offenders?

Rational choice theory

Differential association theory

Routine activities theory

Social control theory

Q67. Which of the following criminological theories asserts that the three elements that have the most influence on crime are the availability of suitable targets, absence of capable guardians, and presence of motivated offenders?

Rational choice theory

Differential association theory

Routine activities theory

Social control theory

Q68. Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but it allows exceptions for unknowing violations of the law

True

False

Q69. Which of the following components of the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Enterprise Risk Management-Integrating with Strategy and Performance refers to an organization’s ability to continually assess how well its enterprise risk management (ERM) capabilities and practices have increased value over time and how they will continue to drive value for the organization?

Risk tolerance

Governance and culture

Strategy and objective-setting

Review and revision

Q70. Who is ultimately responsible for responding appropriately to instances of fraud within an organization?

Internal auditors

The audit committee

General counsel

Management

Q71. Daniela, an independent Certified Fraud Examiner (CFE), was hired by Charles, executive director of a nonprofit organization, to investigate a straightforward embezzlement case. During the investigation, Daniela learns that Charles is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Daniela should:

Tell the nonprofit’s board of trustees about Charles

Report Charles to law enforcement

Not disclose the information about Charles.

Resign from the engagement.

Q72. Which of the following statements is FALSE regarding an organization’s fraud risk management program?

The program must include mechanisms to address breaches in compliance.

The punishment for intentional noncompliance should be carried out in a consistent and firm manner.

Formal sanctions for intentional noncompliance should be determined and enacted privately

A specific individual or team should be designated as responsible for monitoring compliance with the program

Q73. Which of the following Is FALSE regarding a fraud risk assessment?

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

The assessment should be used to improve employee fraud awareness.

The designation of an area as being high risk does not conclusively mean that fraud is occurring there.

The objective of the assessment is to provide an estimate of the organization’s fraud losses.

Q74. Gray, an independent Certified Fraud Examiner (CFE), was hired by Green, president of the ABC Corporation, to investigate allegations that one of ABC’s employees is taking kickbacks. During the investigation. Gray teams that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:

Not disclose the information about Green.

Report Green to law enforcement

Tell the company’s board of directors about Green.

Resign from the engagement

Q75. According to modern criminological studies, which of the following is the determinant aspect of white-collar crime?

Cultural ties

Criminal history

Organizational opportunity

Social class

Q76. According to International Organization for Standardization (ISO) 31000:2018, an effective and efficient risk management program contains all of the following principles EXCEPT:

The program takes human and cultural factors into account.

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

The program facilitates continuous improvement.

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

Q77. Which of the following statements is MOST ACCURATE regarding an effective system of anti-fraud controls?

It prioritizes implementing detective controls over preventive controls.

It deters fraudsters by increasing the perception that fraud will be detected.

It fully eliminates the risk of fraud by removing opportunities for misbehavior.

It focuses more on preventive controls than detective controls.

Q78. According to behaviorists such as B. F. Skinner, which of the following scenarios is MOST LIKELY to occur when an undesired behavior is punished?

The behavior will return when punishment ceases

The behavior will be permanently suppressed

The behavior will occur more frequently.

The behavior will not be affected by the punishment

Q79. Which of the following statements regarding the use of behavioral nudges as part of a fraud prevention program is MOST ACCURATE?

To be effective, a behavioral nudge should leave full autonomy for the final decision or action within the employee’s control.

Including information in employee training programs about the importance of properly disposing of confidential documents is an example of a nudge.

A nudge reinforces the reasons why a specific behavior is beneficial, while a reminder makes it easier or more likely that individuals will engage in the desired behavior.

The goal of behavioral nudges is to remove all options other than the desired behavior from the choices available to the employee.

Q80. The fact that most groups within groups a society have the same ideas of right and wrong greatly assists in the ability to determine the correct ethical decision in a given situation.

True

False

Q81. According to modern criminological studies, which of the following is the determinant aspect of white-collar crime’?

Organizational opportunity

Absence of risk factors

Potential legal punishment

Social status

Q82. 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

Q83. In the context of a fraud examination, integrity requires which of the following elements?

Independence of mental attitude and avoidance of conflicts of interest.

Prioritization of desires for personal gain over the interests of clients.

Ability to conceal errors to preserve the reliability of the work performed.

Avoidance of differences of opinion on all material matters.

Q84. Jenny is a highly respected employee at XYZ Corp. Her husband’s gambling addiction has caused them to have a significant amount of debt. Jenny begins stealing money from the company to cover her husband’s gambling losses. This situation best illustrates which leg of the Fraud Triangle?

Rationalization

Perceived opportunity

Perceived acquiescence

Perceived non-shareable financial need

Q85. (Which of the following is a best practice when assembling a fraud risk assessment team?)

Team members should all have similar skills and perspectives.

The size of the team should vary based on organization size and the methods used to conduct the assessment.

The team should include only external sources.

The team should exclude operations personnel and members of the legal department for independence purposes.

Q86. 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

Q87. For its compliance program to be effective, an organization must promote the program through appropriate incentives for compliance.

True

False

Q88. Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

Guidance regarding appropriate board structures, responsibilities, and procedures

Support for establishing stronger protection for foreign shareholders than for domestic shareholders

A request that governments have in place an appropriate framework to support good corporate governance practices

Recognition of the importance of the role of stakeholders in corporate governance

Q89. Which of the following is NOT a way that an organization’s fraud risk assessment should be incorporated into the audit process”

It should be used to replace the auditor’s own identification and assessment of fraud risks.

It should be used to assess whether there is a moderate-to-high risk of management override of internal controls within the moderate-to-high fraud risk areas

It should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.

It should be used to design audit tests to evaluate whether the controls are operating effectively

CFE-Fraud-Prevention-and-Deterrence Study Guide Realistic Verified CFE-Fraud-Prevention-and-Deterrence Dumps: https://www.practicematerial.com/CFE-Fraud-Prevention-and-Deterrence-exam-materials.html

ACFE CFE-Fraud-Prevention-and-Deterrence Exam Syllabus Topics:

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