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 CFE-Fraud-Prevention-and-Deterrence Dumps with Practice Exam Questions Answers

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Last Update: Aug 12, 2026

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CFE-Fraud-Prevention-and-Deterrence Question Includes: Single Choice Questions: 330,

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CFE-Fraud-Prevention-and-Deterrence Questions and Answers

Question # 1

Which of the following statements is MOST ACCURATE regarding best practices that organizations can take to protect and support whistleblowers?

A.

Organizations should include in their whistleblower policies the specific penalties that people might encounter for refusing to report known misconduct.

B.

Organizations should emphasize that rules regarding whistleblower protections are only intended for lower-level employees who might be more vulnerable to retaliation.

C.

Organizations should implement a clear whistleblower policy that lists every type of misconduct that has ever been reported at the company.

D.

Organizations should publicize their whistleblower policies and procedures to individuals both inside and outside of the organization.

Question # 2

According to ACFE research, which of the following is TRUE?

A.

Complaints about family problems is the most reported behavioral red flag displayed by fraud perpetrators.

B.

Men and women commit similar amounts of occupational fraud.

C.

Most employees who commit occupational fraud are first-time offenders.

D.

Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.

Question # 3

Adan, an internal auditor who works at BKY Co., is reviewing the auditing procedures for his company. He is specifically considering the ways BKY can proactively audit for fraud. Which of the following is TRUE regarding the use of proactive fraud auditing procedures at BKY?

A.

Analytical review of BKY ' s financial statements is the best way to uncover small frauds that might be missed by other detection methods.

B.

Fraud audit procedures should be designed to avoid an element of surprise.

C.

Auditors should avoid asking questions such as, " Has anyone ever asked you to do something unethical? " as part of their audits, as this can limit employees ' willingness to communicate.

D.

Fraud assessment questioning techniques are most effectively used as part of the normal audit process.

Question # 4

Which of the following is one of the four recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

A.

Provide adequate resources and authority to the internal audit function.

B.

Have a mandatory independent finance committee.

C.

Assign oversight of the hotline reporting program to company shareholders.

D.

Develop a written charter for the audit committee.

Question # 5

" Crimes of the Middle Classes " finds that all the following factors have contributed to the rising problem of economic crime EXCEPT:

A.

Media sources sending the message that no one has to settle for second best.

B.

Advancement of information technologies increasing the opportunity for misconduct.

C.

The increase in funds available from government assistance programs.

D.

The economy ' s decreased reliance on credit and a decline in personal debt.

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ACFE CFE-Fraud-Prevention-and-Deterrence Practice Exam FAQs

1. What is the CFE-Fraud-Prevention-and-Deterrence exam?

The Fraud Prevention and Deterrence exam is one of the core sections of the Certified Fraud Examiner (CFE) certification administered by the Association of Certified Fraud Examiners (ACFE). It evaluates your knowledge of why individuals commit fraud (criminology and behavioral theories), corporate governance structures, fraud risk assessment methodologies, ethical standards, and designing effective organizational controls to deter fraudulent activities.

2. What is the format, total questions, and time duration for this exam?

The Fraud Prevention and Deterrence module consists of 70 multiple-choice and True/False questions. Candidates are given 1.5 hours (90 minutes) to complete this closed-book examination. To pass, you must achieve a minimum score of 75%.

3. How is the official ACFE Fraud Prevention and Deterrence Exam delivered?

The exam is delivered electronically via Prometric. Candidates can choose between Remote Proctoring (taken from home/office using Prometric's ProProctor app) or an In-Person appointment at an authorized Prometric testing center.

4. How hard is the CFE Fraud Prevention and Deterrence exam compared to other sections?

While considered conceptually straightforward by candidates with a background in internal controls or risk management, the section requires careful reading. Questions rely heavily on scenarios where multiple answers sound plausible, making thorough preparation essential.

5. What happens if I fail the Fraud Prevention and Deterrence section on my first try?

The ACFE allows candidates up to five attempts per exam section. Retake fees apply ($110 per failed section), and you can re-register quickly to retake the module after strengthening your weak areas using Dumpstool's practice engine.

6. How long should I study for the CFE Fraud Prevention and Deterrence exam?

Most candidates spend between 2 to 4 weeks dedicated to this specific module. Utilizing Dumpstool's targeted CFE-Fraud-Prevention-and-Deterrence PDF questions and detailed answer keys can significantly shorten study time while maximizing retention.

7. Do I need to be a member of the ACFE before taking the CFE exam?

Yes, you must hold an active ACFE membership and have an approved CFE Exam Application on file prior to scheduling your exam appointment.

8. How can Dumpstool help me prepare for the CFE-Fraud-Prevention-and-Deterrence exam?

Dumpstool provides high-quality, up-to-date CFE-Fraud-Prevention-and-Deterrence practice questions mapped to the official ACFE exam blueprint. Every question includes detailed explanations so both working professionals and students can master complex concepts rather than just memorizing answers.