SOFE CFE Dumps
| Exam Code | CFE |
| Exam Name | Certified Fraud Examiner |
| Update Date | 03 Jun, 2026 |
| Total Questions | 186 Questions Answers With Explanation |
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CFE Practice Questions Answers – Your Path to Certification Success
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Question # 1
A process by which several bidders conspire to split contracts up and ensure that each gets a certain amount of work is called:
A. Bid opening
B. Fictitious Bidding
C. Bid pooling
D. Bid log
Question # 2
Which of the following is NOT standard of generally accepted accounting principles?
A. Conservatism
B. Cost
C. Full disclosure
D. Quality control
Question # 3
A ___________ occurs when an employee, manager or executive has an undisclosed economic or personal interest in a transaction that adversely affects the organization.
A. Conflict of interest
B. Illegal sale
C. Unauthorized purchase
D. Financial disclosure
Question # 4
In ___________ scheme, an employee creates false vouchers or submits false invoices to the employer.
A. Sale requisition
B. Purchase requisition
C. Voucher handling
D. Cash generating
Question # 5
________ decrease assets and expenses and/or increase liabilities and/or equity
A. Journal Entries
B. Debit
C. Credit
D. None of all
Question # 6
A variation between the physical inventory and the perpetual inventory totals is called:
A. Altered inventory
B. Account receivable
C. Shrinkage
D. Write-offs
Question # 7
In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?
A. Bid-rigging
B. Kickbacks
C. Competitive bidding
D. Bid solicitation
Question # 8
The scheme in which the same vendor is receiving favorable treatment van be found in purchases by vendor searches.
A. True
B. False
Question # 9
__________ is required if and when officers, executives or other persons in trusted positions become subjects of a criminal indictment.
A. Conflict of interest
B. Turnaround sale or flip
C. Disclosure
D. Resource diversion
Question # 10
Maintain the presence of a manager or supervisor near the area of the cash register as a deterrent to theft is a prevention for:
A. Fraudulent statement scheme
B. Asset misappropriation scheme
C. Larceny scheme
D. Register disbursement scheme
Question # 11
Which of the following are the classifications for the Corruption?
A. Bribery, economic extortion, illegal gratuities and conflicts of interest
B. Corruption, bribery, economic extortion, conflicts of interest
C. Overbilling, bribery, bid-ridding and illegal gratuities
D. economic extortion, bribery, illegal gratuities and corruption
Question # 12
According to a survey, in principal perpetrator, males in a majority of cases, accounting for ___ percent of frauds versus ___ percent in which a female was the primary culprit.
A. 62 versus 36
B. 61 versus 39
C. 62 versus 37
D. None of the above
Question # 13
Which of the following factors is NOT included in most financial statement schemes?
A. Fictitious revenues
B. Persuasive Evidence
C. Concealed liabilities and expenses
D. Improper asset valuations
Question # 14
The heart of book keeping system is the ___________.
A. Asset
B. Liability
C. Checkbook
D. Journal
Question # 15
_____________ involves purposeful misreporting of financial information about the organization that is intended to mislead those who read it.
A. Fraudulent statement
B. Corruption
C. Asset misappropriations
D. None of above
Question # 16
Which of the following is NOT the example of bribery prevention policies?
A. Reporting gifts
B. Discounts
C. Business meetings
D. Resource diversions
Question # 17
Bank cut-off statements should be requested for 10-15 days after the closing date of the balance sheet.
A. True
B. False
Question # 18
A running count that records how much inventory should be on hand is referred to:
A. Altered inventory
B. Perpetual inventory
C. Shrinking inventory
D. Fictitious inventory
Question # 19
According to Marshall, ______ are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
A. Assets
B. Liabilities
C. Credentials
D. None of above
Question # 20
Assets that are long-lived and that differ from property, plant and equipment hat has been purchased outright or acquired under a capital lease are:
A. Tangible Assets
B. Intangible Assets
C. Forced Assets
D. None of above
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