Guide (New 2026) Actual ACFE CFE-Financial-Transactions-and-Fraud-Schemes Exam Questions
CFE-Financial-Transactions-and-Fraud-Schemes Exam Dumps Pass with Updated 2026 Certified Exam Questions
ACFE CFE-Financial-Transactions-and-Fraud-Schemes, also known as the Certified Fraud Examiner - Financial Transactions and Fraud Schemes certification exam, is an industry-recognized certification designed to equip professionals with the knowledge and skills needed to identify, prevent, and investigate financial fraud. Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam certification is offered by the Association of Certified Fraud Examiners (ACFE), which is the world's largest anti-fraud organization with over 85,000 members worldwide.
The CFE-Financial Transactions-and-Fraud-Schemes Certification Exam covers a range of topics related to financial transactions and fraud schemes. These include financial statement fraud, asset misappropriation, corruption, money laundering, and data analysis. CFE-Financial-Transactions-and-Fraud-Schemes exam is designed to test a candidate's knowledge of these topics and their ability to apply this knowledge to real-world situations.
NEW QUESTION # 80
Which of the following is NOT a measure commonly taken by fraudsters during account takeover schemes?
- A. Change account contact information to avoid alerting the true account holder.
- B. Obtain email addresses and other account log-in information using phishing emails.
- C. Place orders for products or transfer funds from the overtaken accounts.
- D. Avoid accessing multiple payment accounts with the same stolen log-in credentials.
Answer: A
NEW QUESTION # 81
Which of the following is NOT one of the information security goals that should be achieved to secure an e- commerce system for users and account holders?
- A. Penetrability of data
- B. Confidentiality of data
- C. Availability of data
- D. Integrity of data
Answer: A
Explanation:
Comprehensive and Detailed Explanation From the ACFE Financial Transactions and Fraud Schemes Manual The ACFE Fraud Examiners Manual (2020 International Edition), under the section on Information Security in Electronic Commerce Systems, describes the three primary security goals that must be achieved to protect users and account holders:
* Confidentiality
* Integrity
* Availability
These three goals form the cornerstone of information system protection and are often referred to as the CIA triad.
1. Confidentiality
Confidentiality ensures that sensitive information is accessible only to authorized individuals. The Manual highlights that e-commerce systems must protect customers' personal and financial data from unauthorized access.
2. Integrity
Integrity requires that the information in the system is accurate and has not been improperly altered. This prevents fraudulent manipulation of records, transactions, and account balances.
3. Availability
Availability ensures that systems and data are accessible to authorized users when needed. This includes preventing disruptions caused by system failures, denial-of-service attacks, or internal sabotage.
These three goals are explicitly documented in the ACFE Manual as essential security requirements for safeguarding electronic financial systems.
Why Option C is the Correct Answer
"Penetrability of data" is NOT an information security goal.
In fact, it is the opposite of what an information security framework seeks to achieve. No section of the ACFE Manual identifies "penetrability" as a required or legitimate objective. Instead, systems should be resistant to penetration attempts.
Thus, Option C does not belong to the CIA model or any ACFE-described security framework.
ACFE Manual Reference
These concepts are covered in the Financial Transactions and Fraud Schemes section discussing information security objectives for e-commerce environments, which identifies confidentiality, integrity, and availability as the foundational goals of secure systems.
NEW QUESTION # 82
Which of the following statements is TRUE regarding the prevention of inventory theft?
- A. The purchasing supervisor should conduct the physical inventory count.
- B. The person who is responsible for shipping inventory should also be responsible for converting inventory to scrap.
- C. Shipping documents should be prenumbered and controlled.
- D. The inventory requisition form should be completed by the same person who is responsible for incoming shipments.
Answer: C
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:Prenumbering and controlling shipping documents is a strong preventive measure against inventory theft because it ensures all inventory leaving the warehouse is properly authorized and tracked.
* Analysis of Incorrect Options:
* A. Same person for requisition and receiving - Violates segregation of duties.
* B. Purchasing supervisor counting inventory - Creates conflict; inventory should be counted by independent staff.
* D. Same person for shipping and scrap - Increases fraud risk.
* Key Concept: Inventory theft prevention - control over documentation.
Reference: ACFE Fraud Examiners Manual (2020), Inventory and Other Assets: Inventory Theft Controls.
NEW QUESTION # 83
The person or persons who have access to __________ are often the targets of unethical vendors seeking an advantage in the process.
- A. Bid-splitting
- B. General purchasing
- C. Sealed bids
- D. Tailor specifications
Answer: C
NEW QUESTION # 84
________ increase assets and expenses and/or decrease liabilities and/or equity.
- A. Debit
- B. None of all
- C. Credit
- D. Journal Entries
Answer: A
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:In double-entry accounting, a debit increases assets and expenses while decreasing liabilities and equity. Debits are entries on the left side of an account.
* Analysis of Incorrect Options:
* A. Journal Entries - General record of transactions, not the specific effect.
* C. Credit - Opposite effect: increases liabilities/equity, decreases assets/expenses.
* D. None of all - Incorrect because "debit" is the recognized effect.
* Key Concept:Debit rules in double-entry accounting.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Accounting Concepts - Debits and Credits.
NEW QUESTION # 85
The price of an asset on which the asset is selling at on the open market in a transaction between a willing buyer and a wiling seller is called:
- A. material value
- B. Fair value
- C. Absolute value
- D. Cost value
Answer: B
NEW QUESTION # 86
Which of the following is the MOST ACCURATE statement about the phases of procurements involving open and free competition?
- A. In the bid evaluation and award phase, the procuring entity fulfills its duties through the performance of its contractual obligations.
- B. In the solicitation phase, prospective contractors prepare and submit their bids.
- C. In the post-award and administration phase, the procuring entity identifies its needs and develops the criteria used to award the contract.
- D. In the presolicitation phase, the procuring entity issues the solicitation document.
Answer: D
NEW QUESTION # 87
Assets that are long-lived and that differ from property, plant, and equipment that has been purchased outright or acquired under a capital lease are:
- A. None of the above
- B. Intangible Assets
- C. Tangible Assets
- D. Forced Assets
Answer: B
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:Intangible assets are long-lived assets that lack physical substance and differ from property, plant, and equipment. Examples include goodwill, patents, trademarks, and copyrights. They provide long-term benefits but cannot be physically touched.
* Analysis of Incorrect Options:
* A. Tangible Assets - These have physical form (e.g., equipment, land).
* C. Forced Assets - Not an accounting category.
* D. None of the above - Incorrect since intangible assets match the definition.
* Key Concept:Classification of Assets - tangible vs. intangible.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Accounting Concepts - Types of Assets.
NEW QUESTION # 88
Which of the following can constitute a bribe, even if the illicit payment is never actually made?
- A. Offering a payment
- B. Overbilling in payment
- C. Corruption in payment
- D. kickback payment
Answer: A
NEW QUESTION # 89
Entering a sales total lower than the amount actually paid by the customer is called:
- A. All of the above
- B. Recording a sale procedure
- C. Underrings a sale
- D. Internal sales audits
Answer: C
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:An underring occurs when an employee intentionally enters a lower sales amount into the register than what was collected from the customer. The difference is pocketed by the employee. This is a common register manipulation skimming scheme.
* Analysis of Incorrect Options:
* B. Recording a sale procedure - General process, not fraud.
* C. Internal sales audits - Control activity, not the fraud scheme.
* D. All of the above - Incorrect, since only "underring" is accurate.
* Key Concept:Underring schemes in cash register fraud.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Cash Receipts - Skimming via Underrings.
NEW QUESTION # 90
The principle behind full disclosure is:
- A. Any material deviation from SAS must be explained to the writer of the financial information.
- B. Any material deviation from GAAP must be explained to the writer of the financial information.
- C. None of above
- D. Any material deviation from GAAP must be explained to the reader of the financial information.
Answer: D
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:The full disclosure principle requires that all material facts and deviations from GAAP be disclosed to readers of financial statements so that they are not misled.
Transparency is essential for informed decision-making by investors, creditors, and regulators.
* Analysis of Incorrect Options:
* B. SAS - Refers to auditing standards, not accounting standards.
* C. Writer - Incorrect; disclosures are intended for readers/users.
* D. None of above - Incorrect since option A is correct.
* Key Concept:Full disclosure principle - providing users with all material information.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Accounting Concepts - GAAP:
Full Disclosure.
NEW QUESTION # 91
___________ is to allow the owner, investors, creditors and others with an interest to know the appropriate book worth of the business at a particular date.
- A. Balance sheet
- B. Equity
- C. Income statement
- D. Financial record
Answer: A
NEW QUESTION # 92
Which of the following scenarios describes an electronic funds transfer (EFT) fraud scheme?
- A. An employee of a person-to-person (P2P) provider misrepresents the number of hours they worked to increase the amount of their paycheck.
- B. A person who has stolen information about another person's bank account instructs a biller to obtain payment from that account.
- C. A credit card is intercepted in the mail by a thief who proceeds to use the card fraudulently.
- D. A server secretly scans a customer's credit card information into a small device for fraudulent use at a later time.
Answer: B
Explanation:
Explanation/Reference: https://bjs.ojp.gov/content/pub/pdf/eftsf-cc.pdf
NEW QUESTION # 93
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. Understated sales (skimming) scheme
- C. Kickback scheme
- D. Cash larceny scheme
Answer: D
Explanation:
Detailed Explanation:
* Rationale for Correct Answer: Cash larceny is the theft of cash after it has been recorded in the company's books. Skimming, in contrast, is theft of cash before recording.
* Analysis of Incorrect Options:
* B & D - Both describe forms of skimming (unrecorded or understated sales).
* C - Kickback scheme is corruption, not cash theft.
* Key Concept: Distinguishing cash larceny (on-book theft) from skimming (off-book theft).
Reference: ACFE Manual, Cash Receipts - Cash Larceny.
NEW QUESTION # 94
Which sale occurs when the accomplice of the employee-fraudster "buys" merchandise, but the employee does not ring up the sale, and the accomplice takes the merchandise without making any payment?
- A. Fraudster sale
- B. Preliminary sale
- C. Fake sale
- D. Whole sale
Answer: C
NEW QUESTION # 95
Which are check tempering frauds in which an employee prepares a fraudulent check and submits it usually along with legitimate checks to an authorized maker who signs it without a proper review?
- A. Concealed check scheme
- B. Payable check scheme
- C. Legitimate check scheme
- D. Endorse check scheme
Answer: A
NEW QUESTION # 96
"Anticipate possible losses and omit potential profits", this results in:
- A. Asymmetrical accounting
- B. Bearing accounting
- C. Symmetrical accounting
- D. Playing accounting
Answer: A
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:This description reflects asymmetrical accounting, which is based on the conservatism principle. Possible losses are recorded, but potential gains are omitted until realized.
This creates an asymmetry in recognizing losses versus gains.
* Analysis of Incorrect Options:
* B. Symmetrical accounting - Would recognize gains and losses equally, contrary to conservatism.
* C. Playing accounting - Fraud scheme, not a principle.
* D. Bearing accounting - Not a recognized concept.
* Key Concept:Asymmetry in accounting - conservative recognition of losses versus gains.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Accounting Concepts - Conservatism and Asymmetric Accounting.
NEW QUESTION # 97
Organizations can employ ___________ to provide protection for computing resources by increasing security policies and awareness, conducting security audits and tests, and developing an incident response plan.
- A. Physical access controls
- B. Administrative security controls
- C. Technical security controls
- D. Logical access controls
Answer: B
Explanation:
Explanation/Reference: https://purplesec.us/security-controls/#:~:text=Administrative%20security%20controls%20refer%20to,with%20the%20organization's%20security%20goals
NEW QUESTION # 98
Neil, a Certified Fraud Examiner (CFE), discovers that a borrower used the same property as a security, or guarantee, to obtain multiple loans from different financial institutions before they were recorded on his credit report. Which type of loan fraud BEST describes the scheme Neil uncovered?
- A. Reciprocal loan arrangements
- B. Single-family housing loan fraud
- C. Double-pledging collateral
- D. Linked financing
Answer: C
NEW QUESTION # 99
Which of the following is a method of identity theft prevention recommended for individuals?
- A. Avoid the use of biometric authentication to ensure the security of fingerprints, voice patterns, and other identifying information.
- B. Do not reuse the same answers to security questions for more than two accounts.
- C. Install security updates and patches for personal computers every six months.
- D. Create passwords that are at least eight characters long and contain a combination of letters, numbers, and symbols.
Answer: C
Explanation:
Explanation/Reference: https://www.houstontx.gov/police/crime_prevention/id_theft.htm
NEW QUESTION # 100
Sinead has lost her job and can no longer afford the luxury car that she recently purchased. Instead of allowing her car to be repossessed by her bank, Sinead decides to leave her car in a high-crime area with the keys in the ignition, hoping that it will be stolen so that she can make an insurance claim for the loss. Sinead is planning to commit which of the following insurance scams?
- A. Phantom vehicle
- B. Past posting
- C. Ditching
- D. Staged accident
Answer: D
Explanation:
Explanation/Reference: https://www.acfe.com/uploadedfiles/acfe_website/content/documents/insurance-fraud-handbook.pdf (15)
NEW QUESTION # 101
Jones is an accounts payable clerk at Smith Company. He intentionally sent the wrong vendor a check for some supplies. He then called the vendor, explained his "mistake", and requested that the vendor mail back the check. Jones then intercepted the returned check and deposited it in his own account. What type of scheme did he commit?
- A. A pass-through scheme
- B. A shell company scheme
- C. An altered payee scheme
- D. A pay and return scheme
Answer: D
Explanation:
Explanation/Reference: https://www.gma-cpa.com/blog/billing-schemes-3-ways-fraudsters-can-cash-in-on-your-nonprofit#:~:text=Also%20known%20as%20a%20%E2%80%9Cpay,doesn't%20know%20it's%20occurring
NEW QUESTION # 102
Which of the following scenarios BEST describes an electronic funds transfer (EFT) fraud scheme?
- A. An individual uses another person's personal identifying information to fill out a credit card application in their name and plans to make online purchases using the new card.
- B. A restaurant server secretly scans a customer's credit card information into a small device for fraudulent use at a later time.
- C. A hacker obtains the account and password information of consumers and uses them to direct funds from their accounts.
- D. An employee of a person-to-person (P2P) provider misrepresents the number of hours that they worked to increase the amount of money earned on their paycheck.
Answer: C
Explanation:
Detailed Explanation:
* Rationale for Correct Answer: EFT fraud involves the unauthorized transfer of money from victims' accounts using stolen access credentials. A hacker using stolen log-in details to redirect funds is the textbook example.
* Analysis of Incorrect Options:
* A - Describes identity theft/credit card fraud, not EFT fraud.
* C - Describes skimming of card data, not EFT.
* D - Describes payroll fraud, not EFT.
* Key Concept: EFT fraud = unauthorized access to electronic banking/payment systems.
Reference: ACFE Manual, Financial Transactions - Electronic Payment Fraud.
NEW QUESTION # 103
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