Practice CFE-Fraud-Prevention-and-Deterrence Exam Online

Question 1

According to ACFE research, which of the following is TRUE regarding the three major categories of occupational fraud?

A : Identity theft is both the most common and costliest category of occupational fraud.

B : Asset misappropriation schemes are the most common category of occupational fraud.

C : Corruption schemes are the costliest category of occupational fraud.

D : Financial statement fraud schemes are the most common category of occupational fraud.

Answer: B

Question 2

In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss. This response is known as:

A : Assuming the risk

B : Mitigating the risk

C : Avoiding the risk

D : Transferring the risk

Answer: D

Question 3

Which of the following is TRUE regarding the internal audit function's reporting responsibilities pertaining to fraud?

A :

The internal audit function should discuss how and when to report fraud-related issues with senior management and the board of directors before such issues arise.

B :

The internal audit function is permitted, but not required, to periodically report about the organization's fraud risks to senior management and the board of directors.

C :

The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence

D :

The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.

Answer: A

Question 4

In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:

A : The organization's incentive programs

B : The possibility of management's override of controls

C : Risks to the organization's reputation

D : All of the above

Answer: D

Question 5

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

A :

A requirement for corporations to establish a legal, regulatory, and institutional framework to support good governance practices

B : A call to support the equal treatment of all members of an organization's governing body

C : Guidance regarding appropriate board structures, responsibilities, and procedures

D :

An examination of the importance of effectively designed and implemented internal control mechanisms within an organization

Answer: C

Name:	Certified Fraud Examiner - Fraud Prevention and Deterrence
Exam Code:	CFE-Fraud-Prevention-and-Deterrence
Certification:	Certified Fraud Examiner
Vendor:	ACFE
Total Questions:	360
Last Updated:	May 30, 2026

ACFE CFE-Fraud-Prevention-and-Deterrence Answers