CFE Investigation Certified Fraud Examiner Practice Test
CFE-INVESTIGATIONS Exam Format | Course Contents | Course Outline | Exam Syllabus | Exam Objectives
Exam Detail:
The CFE-INVESTIGATIONS (CFE Investigation Certified Fraud Examiner) exam is a professional certification exam offered by the Association of Certified Fraud Examiners (ACFE). It is designed to assess the knowledge and skills of individuals involved in fraud investigations. Here are the exam details for the CFE-INVESTIGATIONS exam:
- Number of Questions: The exam typically consists of 125 multiple-choice questions.
- Time Limit: The time allocated to complete the exam is 4 hours.
Course Outline:
The CFE-INVESTIGATIONS course provides a comprehensive understanding of various topics related to fraud investigations. The course outline generally includes the following areas:
1. Introduction to Fraud Investigations:
- Understanding fraud investigations and their importance.
- The role of a fraud investigator and their ethical obligations.
- The legal framework for fraud investigations.
2. Fraud Prevention and Deterrence:
- Identifying fraud risk factors and vulnerabilities.
- Developing and implementing effective fraud prevention programs.
- Evaluating and improving internal controls.
3. Financial Transactions and Fraud Schemes:
- Understanding financial transactions and common fraud schemes.
- Recognizing red flags and indicators of fraud.
- Analyzing financial statements and records.
4. Fraud Investigation Process:
- Planning and conducting fraud investigations.
- Gathering evidence and conducting interviews.
- Documenting findings and preparing investigation reports.
5. Legal Considerations and Prosecution:
- Understanding the legal system and the role of the investigator.
- Laws and regulations related to fraud investigations.
- Presenting evidence and supporting prosecution efforts.
6. Data Analysis and Technology in Investigations:
- Using data analysis techniques to detect and investigate fraud.
- Digital evidence collection and analysis.
- Leveraging technology tools for fraud investigations.
Exam Objectives:
The objectives of the CFE-INVESTIGATIONS exam are as follows:
- Assessing candidates' knowledge of fraud investigation principles and techniques.
- Evaluating candidates' understanding of fraud prevention and detection methods.
- Testing candidates' proficiency in conducting fraud investigations and gathering evidence.
- Assessing candidates' knowledge of legal considerations and ethical obligations in fraud investigations.
- Evaluating candidates' understanding of data analysis and technology applications in fraud investigations.
Exam Syllabus:
The specific exam syllabus for the CFE-INVESTIGATIONS exam covers the following topics:
1. Introduction to Fraud Investigations:
- Fraud investigation principles and concepts.
- Ethics and legal considerations in fraud investigations.
2. Fraud Prevention and Deterrence:
- Fraud risk assessment and prevention programs.
- Internal controls and fraud prevention measures.
- Corporate governance and ethics.
3. Financial Transactions and Fraud Schemes:
- Common fraud schemes and red flags.
- Analyzing financial statements and records.
- Fraud risk factors in different industries.
4. Fraud Investigation Process:
- Planning and conducting fraud investigations.
- Evidence gathering and documentation.
- Interviewing techniques and statement analysis.
5. Legal Considerations and Prosecution:
- Legal framework for fraud investigations.
- Laws and regulations related to fraud.
- Presenting evidence and supporting prosecution efforts.
6. Data Analysis and Technology in Investigations:
- Data analysis techniques for fraud detection.
- Digital evidence collection and analysis.
- Technology tools for fraud investigations.
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CFE Investigation Certified Fraud Examiner
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Question: 27
Professional auditing standards suggest that auditors incorporate an "element of predictability" in the selection of
auditing procedures to be performed so that they ensure the same areas are tested in the same manner during each
audit.
A . True
B . False
Answer: A
Question: 28
Management at ABC Corp. is assessing the company s ethical tone and how it affects the organization s fraud risk. To
most effectively reinforce an anti-fraud culture, management should
A . Create an environment in which employees feel safe challenging managements decisions
B . Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
C . Implement two separate sets of ethics policies one for management and one for employees
D . All of the above
Answer: D
Question: 29
According to G20/OECD Principles of Corporate Governance (the Principles):
A . Governments should have in place a corporate governance framework that promotes transparent and fair markets
B . Companies should disclose all financial information to investors, regardless of the cost burden of the disclosure
C . A corporate governance framework should focus on the rights of shareholders but does not need to include the
rights of other organizational stakeholders
D . All of the above
Answer: A
Question: 30
White, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination. She did not find fraud, but. in
White’s opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence
of fraud. Under the ACFE Code of Professional Ethics. White may include her opinion on the controls in her report to
management
A . True
B . False
Answer: A
Question: 31
Which of the following statements is FALSE regarding an organization’s fraud risk management program1?
A . A Formal sanctions for intentional noncompliance should be well-publicized throughout the company
B . There should be measures in place to address failures in the design or operation of anti-fraud controls, as well as
fraud occurrervces
C . The program must include mechanisms to monitor and identify breaches in compliance
D . The responsibility of handling suspected incidences of noncompliance should be delegated to someone outside of
the company
Answer: A
Question: 32
The Public Interest Oversight Board (PIOB) is the global body responsible for establishing international corporate
governance standards.
A . True
B . False
Answer: B
Question: 33
Which of the following is FALSE regarding corporate governance’
A . 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
B . Effective corporate governance practices are considered to be the foundation of fraud risk management.
C . Corporate governances primary purpose is to ensure the accuracy of the organizations financial reports
D . An entity’s corporate governance structure specifies the distribution of rights and responsibilities among the
different participants in the organization
Answer: A
Question: 34
Which of the following is FALSE regarding corporate governance’
A . 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
B . Effective corporate governance practices are considered to be the foundation of fraud risk management.
C . Corporate governances primary purpose is to ensure the accuracy of the organization’s financial reports
D . An entity’s corporate governance structure specifies the distribution of rights and responsibilities among the
different participants in the organization.
Answer: D
Question: 35
Julia is conducting a formal assessment of XYZ Corporation s ethical culture To which of the five components of the
Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Internal Control-Integrated
Framework (the Framework) does her assessment pertain?
A . Control environment
B . Monitoring
C . Control activities
D . Information and communication
Answer: A
/( 48(67,216
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