Free PDF 2026 ACFE CFE-Fraud-Prevention: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam–Trustable Exam Cram Questions

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ACFE CFE-Fraud-Prevention Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Corporate Governance and Ethics	25%	- Ethical culture and tone at the top - Code of conduct and compliance programs
Topic 2: Fraud Risk Management and Deterrence	25%	- Fraud prevention strategies and programs - Monitoring and continuous improvement
Topic 3: Internal Controls and Fraud Prevention	25%	- Internal control design and effectiveness - Fraud detection and prevention controls
Topic 4: Fraud Prevention Framework	25%	- Fraud risk governance and oversight - Fraud risk assessment processes

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2026 CFE-Fraud-Prevention: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Pass-Sure Exam Cram Questions

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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Sample Questions (Q52-Q57):

NEW QUESTION # 52
According to Diane Vaughan. which of the following factors increases an organization's inherent inclination toward committing crime?

A. Management encourages employee loyalty through social functions
B. Rewards are given to employees who challenge the status quo
C. Management separates employee performance goals from company performance goals
D. All of the above

Answer: C

Explanation:
Diane Vaughan's Theory on Organizational Crime:
Vaughan argued that organizational environments prone to crime exhibit a "normalization of deviance," often influenced by management decisions that misalign employee incentives with organizational objectives.
Why C is Correct:
Misaligned goals create conflicting priorities, increasing the likelihood of unethical behavior to meet individual or team objectives.

NEW QUESTION # 53
Based on research regarding the criminogenic nature of organizations, employees with strong personal values and ethics will always disobey a superior's direct order to engage in fraudulent behavior, despite an inherent desire to obey authority figures.

A. Flase
B. True

Answer: A

Explanation:
Criminogenic Nature of Organizations:
Research suggests that organizational culture and pressures can override an individual's personal values, especially when authority figures issue direct orders to engage in unethical behavior.
Why B is Correct:
Strong personal values do not guarantee resistance to unethical orders, as obedience to authority is a powerful psychological force, as seen in studies like the Milgram experiment.
Implication for Fraud Prevention:
Organizations must establish strong ethical environments to reduce the influence of authority pressure on employees

NEW QUESTION # 54
Which of the following Is NOT Included In Ihe five fraud risk management principles described In Fraud Risk Management Guide, a joint publication by COSO and the ACFE?

A. Performing comprehensive fraud risk assessments to identify specific fraud schemes
B. Developing one-time evaluations for each fraud risk management principle
C. Deploying preventive and detective fraud control activities to mitigate fraud risk
D. Communicating the expectations of those governing the fraud risk management program

Answer: B

Explanation:
Fraud risk management requires ongoing evaluations, not one-time assessments, to adapt to evolving risks.

NEW QUESTION # 55
Maria, a Certified Fraud Examiner (CFE), is conducting a fraud risk assessment for a company where her brother serves as the Chief Financial Officer. Maria believes she can remain impartial.
What should she do?

A. Continue the assessment because no actual fraud has been identified
B. Continue the assessment but avoid reviewing financial controls
C. Disclose the relationship and remove herself from the engagement if independence could reasonably be questioned
D. Continue the assessment if the board verbally approves

Answer: C

Explanation:
The ACFE emphasizes both actual objectivity and the appearance of objectivity. Even if Maria believes she can remain unbiased, a reasonable third party could question her independence due to the close family relationship. Proper disclosure and reassignment help preserve confidence in the integrity of the engagement.

NEW QUESTION # 56
Which of the following statements is FALSE?

A. Conducting covert audits is among the most effective fraud prevention methods
B. Controls are not effective in preventing theft and fraud If those at risk do not know of their presence
C. Educating employees about company hotlines and reporting programs increases their perception of detection
D. Most experts agree that it is harder to detect frauds than to prevent them

Answer: A

Explanation:
Fraud Prevention Methods:
Prevention strategies often focus on education, awareness, and robust controls rather than covert methods. While covert audits can detect fraud, they are not primarily preventive.
Why D is False:
Covert audits are reactive and focused on identifying existing fraud, not preventing it.

NEW QUESTION # 57
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