[May 02, 2026] Free Certified Fraud Examiner CFE Official Cert Guide PDF Download

ACFE CFE Official Cert Guide PDF

To become a CFE, candidates must meet strict eligibility requirements, including a minimum of two years of professional experience in the field of fraud prevention or investigation. Candidates must also agree to abide by a strict code of ethics and professional conduct. Once they have met the eligibility requirements, candidates must pass all four parts of the CFE Exam within three years.

The Association of Certified Fraud Examiners (ACFE) is a globally recognized anti-fraud organization that provides education, training, and certification to professionals in the field of fraud examination. The Certified Fraud Examiner (CFE) certification is the globally preferred credential for anti-fraud professionals, and it is awarded to individuals who meet the rigorous standards set by the ACFE. The CFE certification exam is one of the most challenging and prestigious exams in the field of fraud examination.

The CFE exam is a comprehensive, four-part test that covers all aspects of fraud examination. Part one of the exam covers fraud prevention and deterrence, while part two focuses on financial transactions and fraud schemes. Part three of the exam covers investigation, and part four covers law. CFE exam is computer-based and consists of multiple-choice questions.

 

NEW QUESTION # 32
__________ is required if and when officers, executives or other persons in trusted positions become subjects of a criminal indictment.

• A. Resource diversion
• B. Conflict of interest
• C. Disclosure
• D. Turnaround sale or flip

Answer: C

Explanation:
Section: Fraud Prevention and Deterrence

NEW QUESTION # 33
Collusion or bid-rigging between bidders is called

• A. Bid solicitation
• B. Contract acceptance
• C. To withdraw low bids
• D. Bribery receipt

Answer: B

NEW QUESTION # 34
Placing any restriction in the solicitation documents that tend to restrict competition is called prebid solicitation.

• A. True
• B. False

Answer: A

Explanation:
Section: Fraud Prevention and Deterrence

NEW QUESTION # 35
Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

• A. Proper documentation, segregation of duties, independent checks and inventory control
• B. prenumbered affiliations, segregation of duties, independent checks and physical safeguards
• C. Proper documentation, physical padding, independent checks and physical safeguards
• D. Proper documentation, segregation of duties, independent checks and physical safeguards

Answer: D

NEW QUESTION # 36
Bid-rigging scheme occurs when:

• A. an employee once assists a vendor in winning a contract through a single competitive bidding process.
• B. an employee once assists a vendor in winning a contract through a single competitive bidding process.
• C. an employee fraudulently assists a vendor in winning a contract through the competitive bidding process.
• D. an employee does not assist a vendor in winning a contract through the competitive bidding process.

Answer: C

NEW QUESTION # 37
_________ normally are carried on an organization's books as expenses because they tend to be consumed by the organization within a year of purchase.

• A. Equity
• B. Assets
• C. Supplies
• D. Expenses

Answer: C

NEW QUESTION # 38
The heart of book keeping system is the ___________.

• A. Asset
• B. Liability
• C. Journal
• D. Checkbook

Answer: D

Explanation:
Section: Financial Transactions and Fraud Schemes

NEW QUESTION # 39
A voucher is:

• A. a figure that includes the sale order that was send to the dealer, the vendor invoice listing the cost and quantity of items sold, and the internal receiving reports that verify the purchased items have been delivered.
• B. a file that includes the purchase order that was send to the vendor, the vendor invoice listing the cost and quantity of items purchased, and the internal receiving reports that verify the purchased items have been delivered.
• C. a mammogram that includes the purchase order that was send to the purchaser, the purchaser invoice listing the benefits and quantity of items purchased, and the internal receiving reports that verify the purchased items have been sold.
• D. a report that includes the purchase order that was send to the vendor, the vendor invoice listing the quality and quantity of items purchased, and the external receiving reports that verify the items have been sold.

Answer: B

Explanation:
Section: Fraud Prevention and Deterrence

NEW QUESTION # 40
In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?

• A. Bid solicitation
• B. Competitive bidding
• C. Kickbacks
• D. Bid-rigging

Answer: B

NEW QUESTION # 41
Revenue is recognized when it is:

• A. Realized and Evidenced
• B. All of the above
• C. Fictitious and Earned
• D. Realized and Earned

Answer: D

NEW QUESTION # 42
A journal in which all sales made on credit or cash are listed is:

• A. Accounts payable journal
• B. General journal
• C. Accounts receivable journal
• D. Disbursement journal

Answer: C

NEW QUESTION # 43
The principle behind full disclosure is:

• A. Any material deviation from GAAP must be explained to the reader of the financial information.
• B. None of above
• C. Any material deviation from GAAP must be explained to writer of the financial information.
• D. Any material deviation from SAS must be explained to the writer oh the financial information.

Answer: A

NEW QUESTION # 44
The scheme in which the same vendor is receiving favorable treatment van be found in purchases by vendor searches.

• A. True
• B. False

Answer: A

NEW QUESTION # 45
What is sometimes used to overcome well-designed internal controls of a victim company?

• A. Collusion
• B. Fraudulent invoices
• C. Rubber stamp supervisors
• D. Shell company

Answer: A

NEW QUESTION # 46
_________ assumes the business will go on indefinitely in the future.

• A. Cost
• B. Going concern
• C. Materiality
• D. Fair value

Answer: B

Explanation:
Section: Financial Transactions and Fraud Schemes

NEW QUESTION # 47
Which of the following method is NOT used to detect conflicts of interest?

• A. Review of vendor ownership files
• B. Interviews with purchasing personnel
• C. Tips & Complaints
• D. Underbillings of assets

Answer: D

Explanation:
Section: Fraud Prevention and Deterrence
Explanation/Reference:

NEW QUESTION # 48
According to fraud tree, cash has three following schemes:

• A. Skimming, cash larceny and fraudulent disbursements
• B. Cash larceny, cash distribution and fraudulent disbursements
• C. Cash distribution, skimming and fraud analysis
• D. Fraud analysis, skimming and cash misappropriations

Answer: A

Explanation:
Section: Financial Transactions and Fraud Schemes

NEW QUESTION # 49
Entering a sales total lower than the amount actually paid by the customer is called:

• A. Recording a sale procedure
• B. All of the above
• C. Internal sales audits
• D. Underrings a sale

Answer: D

Explanation:
Section: Financial Transactions and Fraud Schemes

NEW QUESTION # 50
Inventory shrinkage is the unaccounted-for reduction in the company's inventory that does not results from theft.

• A. False
• B. True

Answer: A

NEW QUESTION # 51
Asset misappropriations have an effect on the liabilities and do also have an indirect effect on the equity account.

• A. False
• B. True

Answer: A

NEW QUESTION # 52
A ___________ occurs when an employee, manager or executive has an undisclosed economic or personal interest in a transaction that adversely affects the organization.

• A. Unauthorized purchase
• B. Illegal sale
• C. Financial disclosure
• D. Conflict of interest

Answer: D

Explanation:
Section: Fraud Prevention and Deterrence

NEW QUESTION # 53
The most common method of detection in corruption cases is:

• A. Tips
• B. Internal audits
• C. By accident
• D. Internal controls

Answer: A

NEW QUESTION # 54
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