10 free, exam-style Certified Fraud Examiner (CFE) practice questions with answers and explanations. No signup required. Work through them below, then take the full free CFE practice test to study every exam domain.
These 10 free CFE questions are organized by exam domain, so you can see how each part of the Certified Fraud Examiner blueprint is tested. Reveal the answer and explanation under each question.
An accounts receivable clerk receives a $5,000 check from a customer, deposits the check into the company's bank account, and later creates a fictitious credit memo to remove the $5,000 from the customer's account while pocketing the same amount in cash. This scheme is BEST classified as:
Correct answer: B - Larceny
An employee creates a fictitious company called 'Quality Office Services,' registers it at a P.O. Box address, and submits invoices for cleaning services that are never performed. When the invoices are approved and paid, the employee deposits the checks into a bank account opened in the fictitious company's name. This is an example of:
Correct answer: B - Shell company scheme
A criminal organization receives $2 million in cash from illegal drug sales. They use cash-intensive businesses to deposit small amounts into multiple bank accounts, then wire the funds through shell companies in three different countries before using the money to purchase commercial real estate. What is the CORRECT sequence of money laundering stages represented in this scenario?
Correct answer: C - Placement, Layering, Integration
In a civil fraud case, a plaintiff must prove all of the following elements EXCEPT:
Correct answer: D - The defendant acted with criminal intent beyond a reasonable doubt
Under the Daubert standard, which of the following is a factor courts consider when determining whether expert testimony is admissible?
Correct answer: C - Whether the theory or technique has been subjected to peer review and publication
During a fraud examination interview, the interviewer asks: 'Walk me through your typical process for approving vendor invoices.' This is an example of which type of interview question?
Correct answer: C - Open question
A company's internal audit department receives an anonymous tip alleging that a senior manager is embezzling funds. Before launching a formal fraud examination, the fraud examiner should FIRST:
Correct answer: C - Establish predication by evaluating the totality of circumstances
According to the Fraud Triangle theory, which combination of factors must be present for occupational fraud to occur?
Correct answer: C - Pressure, Opportunity, and Rationalization
All of the following are components of the COSO Internal Control Integrated Framework EXCEPT:
Correct answer: C - Fraud Triangle
According to the ACFE's Report to the Nations, which method is responsible for detecting the HIGHEST percentage of occupational fraud cases?
Correct answer: B - Tips
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