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Exam Code: CFE-Fraud-Prevention-and-Deterrence Vendor: ACFE Name: Certified Fraud Examiner - Fraud Prevention and Deterrence Exam 330 Q&A with Explanation Last Update: Jul 15, 2026
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CFE-Fraud-Prevention-and-Deterrence FAQs

The certification demonstrates expertise in fraud prevention, enhancing credibility and career opportunities in the financial and legal sectors, as opposed to the tech sector focus of Microsoft certifications.

Passing the CFE exam can lead to advancements in careers related to finance, auditing, and risk management, unlike the tech and software development advancements associated with Microsoft certifications.

This certification can lead to roles such as Fraud Examiner, Compliance Officer, or Risk Manager, which differ from the IT-centric roles associated with Microsoft certifications.

Professionals in auditing, accounting, anti-fraud, compliance, and risk management should consider this exam, as opposed to IT professionals who typically pursue Microsoft certifications.

The CFE exam specializes in fraud prevention and ethical business practices, while Microsoft certifications typically address software development, cloud computing, and IT infrastructure management.

Yes, options often look correct but differ in context or priority. Train to spot the best answer, not just a correct one—this is where most candidates lose marks.

It focuses on identifying fraud risks, designing prevention controls, and understanding organizational ethics. These skills directly apply to roles in compliance, auditing, and corporate risk management.

Focus on foundational innovation tools and methods. Key areas include the GInI Breakthrough Innovation Method, Design Thinking, research and insights mining, innovation project structuring, and the different roles of an Innovation Manager .

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Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Questions and Answers

Questions 1

In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.

Options:

A.

True

B.

False

Questions 2

Which of the following statements regarding a fraud risk assessment is MOST ACCURATE?

Options:

A.

One of the main objectives of a fraud risk assessment is to provide an estimate of the total amount of money that an organization has lost to fraud since it was first formed.

B.

One of the main objectives of a fraud risk assessment is to determine the organization’s vulnerabilities to both internal and external fraud.

C.

A fraud risk assessment should focus on evaluating only the entity-level fraud risk without regard to any specific individuals or positions within the organization.

D.

A fraud risk assessment should focus on designating areas as high risk only if the team discovers conclusive evidence that fraud has occurred.

Questions 3

To reduce the probability of fraud in financial reports, the National Commission on Fraudulent Financial Reporting, also known as the Treadway Commission, made which of the following recommendations?

Options:

A.

Appoint a mandatory independent finance committee.

B.

Develop a written charter for the audit committee.

C.

Assign oversight of the hotline reporting program to shareholders.

D.

Provide adequate resources and authority to management.