CFE-Fraud-Prevention-and-Deterrence Dumps (2026) Prepare Your Exam With 254 Questions [Q114-Q136]

CFE-Fraud-Prevention-and-Deterrence ACFE

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May 19, 2026

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CFE-Fraud-Prevention-and-Deterrence Dumps (2026) Prepare Your Exam With 254 Questions

New CFE-Fraud-Prevention-and-Deterrence Dumps – Real ACFE Exam Questions

The CFE-Fraud-Prevention-and-Deterrence certification exam covers a wide range of topics related to fraud prevention, detection, and investigation. CFE-Fraud-Prevention-and-Deterrence exam consists of four sections, each of which covers a different aspect of fraud prevention and deterrence. These sections include fraud prevention and deterrence, financial transactions and fraud schemes, investigation, and law.

NEW QUESTION 114
Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?

They state that a corporate governance framework should promote transparent and fair markets and the efficient allocation of resources.

They assert that a corporate governance framework should ensure that the treatment of shareholders differs based on the class of stock they own.

They are intended to be applicable in emerging markets but not in developed economies.

They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.

Comprehensive and Detailed in Depth Explanation:
The G20/OECD Principles of Corporate Governance advocate for transparent and fair markets and the efficient allocation of resources, making Option A the correct statement. These principles are internationally recognized as a standard for policy makers, investors, corporations, and other stakeholders worldwide. The principles are intended to apply to both developed and emerging markets, not just emerging ones (rejecting Option C), and while influential, they are not legally binding mandates (rejecting Option D). They also support the equitable treatment of shareholders, regardless of share class (rejecting Option B).

NEW QUESTION 115
Employee support programs are a fraud prevention mechanism that addresses which leg of the Fraud Triangle

Rationalization

Lack of integrity

Opportunity

Pressure

NEW QUESTION 116
According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO).________Is “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.”

Operational risk assessment

Internal control

Fraud risk management

Financial reporting

NEW QUESTION 117
Which of the following is NOT a responsibility of the organization’s board of directors?

Serving as the intermediaries between shareholders and management

Acting as guardians of the organization’s resources and assets

Directing employees to execute business activities

Assessing the strategy and underlying purpose of management’s decisions and actions

NEW QUESTION 118
Benjamin, a Certified Fraud Examiner (CFE). was contacted regarding an engagement to investigate a complex money laundering case spanning numerous international jurisdictions and involving multiple cutting-edge technologies. Benjamin had previously attended a seminar on investigating money laundering schemes, but he had no other training or experience in such cases. However, he accepted the engagement and chose to conduct the work himself. Benjamin’s conduct would likely be a violation of the ACFE Code of Professional Ethics.

True

False

NEW QUESTION 119
According to the Fraud Risk Management Guide, a joint publication by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the ACFE, under which principle should an organization communicate the expectations of those overseeing the fraud risk management program?

Fraud risk governance

Fraud control activities

Fraud risk management monitoring activities

Fraud investigation and corrective action

NEW QUESTION 120
The objectives of a fraud risk management program include

Proactively identifying fraud risks

Limiting the damage caused by fraud occurrences

Punishing fraud perpetrators

All of the above

NEW QUESTION 121
Which of the following is NOT one of the three general approaches used to control corporate crime?

Strong intervention of the government

Voluntary changes in corporate attitudes and structure

Consumer action to force change

Media blacklisting of the organization

* Three General Approaches to Controlling Corporate Crime:
* Government Intervention: Strong regulations and enforcement to ensure accountability.
* Voluntary Corporate Changes: Encouraging ethical practices through organizational policies.
* Consumer Action: Pressure from consumers demanding corporate responsibility.
* Why D is Incorrect:
* Media blacklisting is not a formal or systematic approach to controlling corporate crime. It is a consequence rather than a preventive or corrective measure.

NEW QUESTION 122
A report by a fraud examiner is privileged from disclosure by anyone other than the client

True

False

NEW QUESTION 123
Which of the following is included in the G20/OECD Principles of Corporate Governance?

A requirement for a corporate governance framework that protects the exercise of management’s rights.

Support for the equal treatment of all members of an organization’s governing body.

A request that governments implement effective internal controls to support good corporate governance practices.

An emphasis on the importance of timely, accurate and transparent disclosure mechanisms.

Comprehensive and Detailed in Depth Explanation:
The G20/OECD Principles emphasize the importance of full disclosure, including timely, accurate, and transparent mechanisms to maintain investor confidence and market integrity. While they support the equal treatment of shareholders, not members of the governing body (rejecting B), and call for corporate-not government-governance responsibilities (rejecting C). Protecting management’s rights (A) is not a governance principle focus.

NEW QUESTION 124
Which of the following is NOT one of the three general approaches used to control corporate crime?

Strong intervention of the government

Voluntary changes in corporate attitudes and structure

Consumer action to force change

Media blacklisting of the organization

NEW QUESTION 125
Eliece, a Certified Fraud Examiner (CFE), and Jewel are employees at Silver Inc. Jewel informs Eliece that she has knowledge of a potential financial statement fraud but does not feel comfortable sharing this information unless Eliece can promise that she will keep it confidential. How should Eliece respond?

Eliece should immediately contact management at Silver Inc. to provide information about her conversation with Jewel and her request for confidentiality.

Eliece should promise Jewel that she will keep the information confidential even though she knows that she will likely be unable to keep that promise.

Eliece should encourage Jewel to report the information to law enforcement because she cannot agree to Jewel’s request.

Eliece should tell Jewel that she will try to keep the information as confidential as possible but she might have an ethical obligation to inform their employer.

CFEs must act ethically and responsibly when handling sensitive information. Eliece should inform Jewel that she will try to maintain confidentiality but must adhere to professional and ethical obligations, which may require disclosing the information to appropriate parties such as her employer or relevant authorities. This balanced response encourages transparency while maintaining ethical standards.

NEW QUESTION 126
According to the 2020 Report to the Nations.___________schemes ate the MOST COMMON form of occupational fraud, while_________schemes are the MOST COSTLY form of occupational fraud.

Asset misappropriation; corruption

Corruption, asset misappropriation

Financial statement fraud: corruption

Asset misappropriation: financial statement fraud

NEW QUESTION 127
Which of the following scenarios would MOST LIKELY be considered a violation of the ACFE Code of Professional Ethics?

Grace, a CFE, uncovered internal control deficiencies that were material but unrelated to the financial statement fraud she was investigating. In her final report to management, Grace included information about the deficiencies despite their being unrelated to the situation she was hired to investigate.

Eric, a CFE, accepted a fraud examination assignment and then instructed his employee to assess the company’s accounts receivable for indications of fraud. He accepted the employee’s work that showed no evidence of fraud without conducting his own assessment. However, the employee missed some key information, causing Eric to fail to uncover a costly fraud scheme.

Mae, a CFE, was hired by a client to conduct a fraud examination but found nothing unusual. A year later, she received a legal order from the local prosecutor’s office to provide the client’s file. Mae complied with the court order despite not having the client’s authorization to provide the file.

All of the above are violations.

Each scenario involves violations of the ACFE Code of Professional Ethics including unauthorized disclosure, failure to exercise due professional care, and inclusion of information outside of the scope of the engagement.
“CFEs must demonstrate a commitment to integrity and objectivity, avoid conflicts of interest, perform assignments with due diligence, and comply with lawful orders, balancing client confidentiality with legal obligations.” Reference:ACFE Fraud Examiners Manual, 2020 International Edition -Standards of Professional Conduct, Section 4.1100 et seq..

NEW QUESTION 128
Professional auditing standards require that auditors incorporate an “element of unpredictability” in the selection of auditing procedures to be performed.

True

False

Professional Auditing Standards Requirement:
* Standards such as the International Standards on Auditing (ISA) and Generally Accepted Auditing Standards (GAAS) require auditors to include elements of unpredictability in their audit procedures to reduce the risk of fraud.
Purpose of Unpredictability:
* By varying the scope, timing, and extent of audits, auditors prevent potential fraudsters from anticipating audit procedures and adjusting their behavior.
Why A is Correct:
* This aligns with established auditing principles to enhance fraud detection and maintain audit integrity.

NEW QUESTION 129
Which of the following is included in the G20/OECD Principles of Corporate Governance?

Support for the equal treatment of all members of an organization’s governing body.

A requirement for a corporate governance framework that protects the exercise of management’s rights.

An emphasis on the importance of timely, accurate, and transparent disclosure mechanisms.

A request that governments implement effective internal controls to support good corporate governance practices.

NEW QUESTION 130
To address an employee’s consistent failure to meet deadlines, a manager removes the employee’s ability to work from home This is an example of what type of behavioral response?

Positive reinforcement

Negative reinforcement

Punishment

None of the above

* Understanding Behavioral Responses:
* Punishment: Involves removing a privilege or applying a negative consequence to decrease undesired behavior.
* Removing the ability to work from home penalizes the employee for failing to meet deadlines.
* Analysis of Other Options:
* A. Positive reinforcement: Adds a reward for desired behavior.
* B. Negative reinforcement: Removes an unfavorable condition to encourage behavior.
* D. None of the above: Incorrect, as this is clearly punishment.
* Conclusion:The manager’s action is an example of punishment.

NEW QUESTION 131
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

Fraud Risk Management Program Requirements:
* A fraud risk management program includes mechanisms to detect and respond to noncompliance, sanctions for violations, and measures to address control failures.
Why B is Incorrect:
* Responsibility for handling suspected incidents should remain within the organization, typically assigned to compliance officers or internal audit teams. Delegating it to external parties undermines internal governance.
Why Other Options are Correct:
* A, C, and D describe essential elements of a fraud risk management program, including monitoring, sanctions, and corrective measures for anti-fraud controls.

NEW QUESTION 132
Which of the following is FALSE regarding corporate governance’

Effective corporate governance practices are most necessary in an organization in which the owners are not also the individuals responsible for setting and executing the business strategy

Effective corporate governance practices are considered to be the foundation of fraud risk management.

Corporate governances primary purpose is to ensure the accuracy of the organizations financial reports

An entity’s corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization

NEW QUESTION 133
Which of the following statements about the fraud risk assessment process Is MOST ACCURATE?

The fraud risk assessment can be effectively conducted by people inside or outside of the organization.

To ensure the independence of the team members, a fraud risk assessment must be conducted by a consultant or other external party.

If the individuals conducting the fraud risk assessment truly believe that fraud could not happen at the organization, then the assessment process should reflect that belief.

The fraud risk assessment is most effective when management’s influence on the process is limited

* Conducting a Fraud Risk Assessment:
* Both internal and external parties can effectively conduct fraud risk assessments.
* Internal teams provide organizational insight, while external parties bring objectivity and specialized expertise.
* Analysis of Other Options:
* B. External party only: Independence is important but not mandatory for effectiveness.
* C. Belief that fraud cannot happen: This would bias the process and render the assessment ineffective.
* D. Limiting management’s influence: Management should actively participate to ensure comprehensive insights.
* Conclusion:Fraud risk assessments can be effectively conducted by both internal and external parties.
References:ACFE guidance on fraud risk assessments.

NEW QUESTION 134
Which of the following is TRUE regarding the G20/OECD Principles of Corporate Governance?

They assert that a corporate governance framework should ensure the equitable treatment of all the organization’s shareholders.

They are intended to be applicable in developed economies but not in emerging markets.

They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.

They state that a corporate governance framework should require disclosure of all financial information to the organization’s investors.

The G20/OECD Principles call for a corporate governance framework that ensures “the equitable treatment of all shareholders including minority and foreign shareholders.” This principle reinforces fairness and equal rights in governance systems.
“The Principles… call for a corporate governance framework that protects the exercise of shareholders’ rights and supports the equal treatment of all shareholders including minority and foreign shareholders.” Reference:ACFE Fraud Examiners Manual, 2020 International Edition -Corporate Governance, Section 4.309.

NEW QUESTION 135
Management at Alpha Company is developing a corporate compliance program. To ensure that the program will be effective, management should both incentivize employees for their compliance and discipline them for any violations.

True

False

NEW QUESTION 136
Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

Professional skepticism means beginning all assignments with the belief that something is amiss.

Professional skepticism involves maintaining a mindset that no fraud has occurred

Fraud examiners should form the engagement hypothesis without regard to the available preliminary information.

Fraud examiners should not relax their skeptical attitudes under any circumstances.

Professional Skepticism Defined:
Professional skepticism is an attitude that includes a questioning mind and a critical assessment of evidence.
Fraud examiners must remain vigilant to indications of potential fraud throughout an engagement.
Consistent Application:
ACFE standards emphasize that skepticism should be applied consistently, even if initial findings do not indicate fraud, to avoid overlooking potential risks.
Why D is Correct:
Relaxing skepticism can lead to missed evidence or poor judgment, undermining the examination’s effectiveness.

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ACFE CFE-Fraud-Prevention-and-Deterrence Certification Exam is a professional certification offered by the Association of Certified Fraud Examiners (ACFE). Certified Fraud Examiner – Fraud Prevention and Deterrence Exam certification is designed to validate the expertise and knowledge of professionals in the field of fraud prevention and deterrence. Certified Fraud Examiner – Fraud Prevention and Deterrence Exam certification exam covers a wide range of topics, including fraud prevention, detection and investigation, ethics, and legal issues related to fraud.

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