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Exam Code: CFE-Fraud-Schemes-and-Financial-Crimes
Exam Name: Certified Fraud Examiner -Fraud Schemes and Financial Crimes
Updated: Aug 13, 2026
Q & A: 355 Questions and Answers
CFE-Fraud-Schemes-and-Financial-Crimes Free Demo download
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| Section | Weight | Objectives |
|---|---|---|
| Asset Misappropriation – Non-Cash Assets | 5–10% | - Misuse of assets - Inventory and equipment theft - Concealment techniques |
| Corruption Schemes | 5–10% | - Bribery and kickbacks - Illegal gratuities and extortion - Conflicts of interest |
| Asset Misappropriation – Cash Receipts | 5–10% | - Prevention and detection methods - Cash larceny schemes - Cash skimming schemes |
| Identity Theft | 1–5% | - Prevention and detection - Types and techniques |
| Accounting Concepts | 5–10% | - Basic accounting principles - Recording and summarizing transactions - Internal control fundamentals - Financial statements structure |
| Industry-Specific Financial Crimes | 15–25% | - Healthcare fraud - Real estate and securities fraud - Insurance fraud - Cyber-enabled and cryptocurrency fraud - Financial institution fraud |
| Theft of Data and Intellectual Property | 5–10% | - Corporate espionage - Data and IP theft methods - Safeguarding proprietary information |
| Asset Misappropriation – Cash Disbursements | 10–15% | - Payroll schemes - Check and payment tampering - Billing schemes - Expense reimbursement schemes |
| Financial Statement Fraud | 10–15% | - Timing and disclosure manipulations - Detection and red flags - Expense and liability understatements - Revenue and asset overstatements |
1. Which of the following statements describes a best practice for preventing procurement fraud?
A) Companies should conduct background checks on vendors after they have been added to the company's vendor master file.
B) Companies should implement vendor-monitoring procedures that address the red flags of the vendor schemes that pose the greatest risk.
C) Companies should limit comprehensive audits of procurement activities to once a year to create a consistent data point for comparison from one year to the next.
D) Companies should assign the responsibility of approving invoice payments to the person who maintains the vendor master file so discrepancies can be better identified.
2. Which of the following scenarios is an example of an economic extortion scheme?
A) A government official demands money in exchange for awarding a contract to a vendor.
B) An employee receives a payment for directing excess business to a vendor.
C) A purchasing employee and vendor agree to bill the company for services that were not provided.
D) A vendor rewards a purchasing employee with a free trip after the employee directs business to the vendor.
3. In what type of fraud scheme does an employee steal cash after it has appeared on the company's books?
A) Unrecorded sales (skimming) scheme
B) Cash larceny scheme
C) Kickback scheme
D) Understated sales (skimming) scheme
4. Which of the following measures would help prevent the theft of company inventory?
A) Having the purchasing agent perform the physical inventory count
B) Appointing one individual to receive incoming inventory shipments and then distribute them
C) Using nonconsecutive shipping documents, job cost sheets, and inventory receiving reports
D) Restricting the ability to access inventory to authorized personnel
5. ________ decrease assets and expenses and/or increase liabilities and/or equity.
A) Journal Entries
B) Credit
C) Debit
D) None of all
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: B |
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