A clerk takes a customer's cash payment, never records the sale, and pockets the money. Which scheme is this?ACFE, Occupational Fraud 2026: A Report to the Nations, Glossary of Terminology (page 106). Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 3, Asset Misappropriation: Cash Receipts.
A clinic bills an insurer for a long, complex office visit when the patient received a brief, routine one. What is this health care fraud called?Wikipedia, Health care fraud (upcoding). Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 14, Health Care Fraud (fraud by service providers).
A company uses accrual accounting. It ships goods and bills the customer in December; the customer pays in January. When is the revenue recorded?Wikipedia, Accrual (accrual basis of accounting). Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 1, Accounting Concepts (cash and accrual accounting).
A customer deposits $9,500 in cash at the same bank on three days running so that no currency transaction report is filed. What has the customer done?31 U.S.C. 5324 and 31 CFR 1010.311. Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 10, Money Laundering (structuring; reporting large cash transactions).
Show all 50 questions (46 more)
Fraud schemes and financial crimes, continued
A fraudster combines a real Social Security number with a made-up name and birth date to open credit accounts. What is this called?Wikipedia, Identity theft (synthetic identity theft). Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 8, Identity Theft.
A person writes checks back and forth between accounts at two banks, using the days each check takes to clear to draw on money that is not there. What is this?Wikipedia, Check kiting. Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 12, Payment Fraud (check fraud schemes).
An accounts payable employee creates a shell company and sends her employer invoices for services that were never rendered. Which fraudulent disbursement scheme is this?ACFE, Occupational Fraud 2026: A Report to the Nations, Glossary of Terminology (page 106). Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 4, Asset Misappropriation: Fraudulent Disbursements (billing schemes).
An employee re-routes an outgoing electronic payment that was meant for a vendor so that it lands in his own bank account. Which scheme is this?ACFE, Occupational Fraud 2026: A Report to the Nations, Glossary of Terminology (page 106). Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 4, Asset Misappropriation: Fraudulent Disbursements (payment tampering).
An hourly employee claims overtime for hours she did not work, and her employer pays it. How does the ACFE classify the scheme?ACFE, Occupational Fraud 2026: A Report to the Nations, Glossary of Terminology (page 106). Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 4, Asset Misappropriation: Fraudulent Disbursements (payroll fraud).
By the SEC's investor glossary, what defines a Ponzi scheme?SEC, Investor.gov glossary, Ponzi Schemes. Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 15, Consumer Fraud and Scams (Ponzi and pyramid schemes).
Competitors agree that some of them will submit bids too high to be accepted, so that a chosen bidder wins and the bidding still looks competitive. What does the Justice Department call this?U.S. Department of Justice, Antitrust Division, Price Fixing, Bid Rigging, and Market Allocation Schemes. Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 20, Procurement Fraud (collusion among contractors).
Four paving firms all bid on every county contract, but they have agreed in advance whose turn it is to be the low bidder. Which bid-rigging scheme is this?U.S. Department of Justice, Antitrust Division, Price Fixing, Bid Rigging, and Market Allocation Schemes. Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 20, Procurement Fraud (collusion among contractors).
How does the IRS Fraud Handbook separate tax avoidance from tax evasion?Internal Revenue Manual 25.1.1.3.3, Avoidance vs. Evasion. Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 17, Tax Fraud.
Illicit cash has already been deposited. It is now wired through a chain of shell-company accounts in several countries to hide where it came from. Which stage of money laundering is this?Wikipedia, Money laundering (placement, layering, integration). Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 10, Money Laundering (stages).
In United States bankruptcy law, what does a Chapter 7 case provide for?United States Courts, Bankruptcy Basics, Chapter 7 and Chapter 11. Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 16, Bankruptcy Fraud (liquidation, reorganization).
Malicious software encrypts a company's files, and a note demands payment for the key. What kind of malware is this?Wikipedia, Ransomware. Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 18, Cyberfraud (types of malware).
Under SEC Rule 10b5-1, when is a trade made "on the basis of" material nonpublic information?17 CFR 240.10b5-1. Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 11, Securities Fraud (insider trading).
Under the federal Anti-Kickback Act (41 U.S.C. 8701), what makes a payment to a contractor's employee a kickback?41 U.S.C. 8701(2), Kickback. Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 6, Corruption (bribery: gifts, kickbacks).
Which of these acts is financial statement fraud rather than asset misappropriation?ACFE, Occupational Fraud 2026: A Report to the Nations, Glossary of Terminology (page 106). Outline: CFE Exam Content Outline (May 2026), Section 1, Domain 2, Financial Statement Fraud.
Fraud investigations and legal issues 19
A bank has filed a suspicious activity report about a customer. May the bank tell the customer?31 CFR 1020.320(e), Confidentiality of SARs. Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 7, Sources of Information (nonpublic records).
A corporation charged with fraud agrees to pay a penalty, reform its compliance program and cooperate; in return the prosecutor will drop the charge if it keeps its word. What is this agreement?Wikipedia, Deferred prosecution. Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 14, Criminal Prosecutions (corporate deferred prosecution agreements).
A fraud examiner seizes a laptop and logs every person who handles it, with dates, until trial. What is this record called?Wikipedia, Chain of custody. Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 5, Collecting Evidence (best practices for collecting and storing evidence).
A private investigator, not acting for the government, records a phone call he is a party to without telling the other person. What does federal law, 18 U.S.C. 2511(2)(d), say?18 U.S.C. 2511(2)(d). Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 11, Covert Operations (legal issues: recordings).
A sales agent bribes a customer to win business for a company. Under section 7 of the United Kingdom Bribery Act 2010, what defence does the company have?Bribery Act 2010 (UK), section 7. Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 3, The Law Related to Fraud (United Kingdom Bribery Act).
An employee of a publicly traded company reports suspected wire fraud by her employer to a federal agency. What does 18 U.S.C. 1514A forbid the company to do?18 U.S.C. 1514A (Sarbanes-Oxley Act, section 806). Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 2, Legal Issues in Conducting Investigations (whistleblower legal protections).
An examiner tests thousands of invoice amounts against Benford's law. About how often should the leading digit be 1 in naturally occurring amounts?Wikipedia, Benford's law. Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 6, Data Analysis and Reporting Tools (Benford's law analysis).
An investigator cannot find the specific source of a subject's income, so he shows how her assets grew and her debts fell over the year. Which indirect method of proof is this?Internal Revenue Manual 9.5.9, Methods of Proof. Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 8, Tracing Assets (direct and indirect methods).
Apart from its ban on bribing foreign officials, what does the Foreign Corrupt Practices Act require of issuers?15 U.S.C. 78m(b)(2) (FCPA accounting provisions). Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 3, The Law Related to Fraud (Foreign Corrupt Practices Act).
Early in an interview the examiner asks, "Tell me how an invoice gets approved here." What type of question is this?Wikipedia, Open-ended question. Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 9, Interview Theory and Application (types of informational questions).
In which kind of legal system does the court itself take an active part in investigating the facts of the case?Wikipedia, Inquisitorial system. Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 13, Overview of the Legal System (inquisitorial and adversarial processes).
No one saw a bookkeeper take $40,000. Bank records show she deposited $40,000 in cash the day after it went missing. What kind of evidence of the theft are the bank records?Wikipedia, Circumstantial evidence. Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 4, Basic Principles of Evidence (direct and circumstantial evidence).
Under Federal Rule of Evidence 401, when is evidence relevant?Federal Rules of Evidence, Rule 401. Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 4, Basic Principles of Evidence (relevancy).
Under Federal Rule of Evidence 611(c), when are leading questions ordinarily allowed?Federal Rules of Evidence, Rule 611(c). Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 16, Testifying (direct testimony and cross-examination).
Under Federal Rule of Evidence 702, what qualifies a witness to testify as an expert?Federal Rules of Evidence, Rule 702. Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 16, Testifying (qualifications to testify as an expert witness).
Under the Federal Acquisition Regulation, which of these is a cause for which a contractor may be debarred from government contracts?48 CFR 9.406-2, Causes for debarment. Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 15, Non-Criminal Actions (administrative actions: suspension, debarment).
Under the SEC whistleblower provision (15 U.S.C. 78u-6), what award may go to a whistleblower whose original information leads to sanctions of more than $1,000,000?15 U.S.C. 78u-6(a)(1) and (b). Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 2, Legal Issues in Conducting Investigations (whistleblower legal protections).
What does Federal Rule of Evidence 901 require before a document is admitted as authentic?Federal Rules of Evidence, Rule 901(a). Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 5, Collecting Evidence, and Domain 4 (authentication).
What is the maximum prison term under the federal wire fraud statute, 18 U.S.C. 1343, when the scheme affects a financial institution?18 U.S.C. 1343. Outline: CFE Exam Content Outline (May 2026), Section 2, Domain 3, The Law Related to Fraud (mail and wire fraud).
Fraud prevention and deterrence 12
After its controls are counted, a retailer still faces some risk of employee theft. It buys crime insurance to cover that loss. Which response to the remaining risk is this?Wikipedia, Risk management (risk treatment options). Outline: CFE Exam Content Outline (May 2026), Section 3, Domain 6, Fraud Risk Assessment (responding to residual risks).
COSO's internal control framework has five components. Which list gives them?Wikipedia, Committee of Sponsoring Organizations of the Treadway Commission (Internal Control: Integrated Framework). Outline: CFE Exam Content Outline (May 2026), Section 3, Domain 3, Management's Fraud-Related Responsibilities (COSO's five components).
During an audit of a public company, the external auditor learns that an illegal act may have occurred. Under 15 U.S.C. 78j-1(b), whom must the auditor see informed?15 U.S.C. 78j-1(b), Required response to audit discoveries. Outline: CFE Exam Content Outline (May 2026), Section 3, Domain 4, Auditors' Fraud-Related Responsibilities (external audits: reporting requirements).
The Fraud Risk Management Guide from COSO and the ACFE names five things an organization can do. Which one comes last, after conducting investigations?ACFE, The Fraud Risk Management Guide (page of the guide). Outline: CFE Exam Content Outline (May 2026), Section 3, Domain 7, Fraud Risk Management (principles of fraud risk management).
The Fraud Risk Management Guide that COSO and the ACFE publish identifies five things an organization can do. Which of these is one of them?ACFE, The Fraud Risk Management Guide (page of the guide). Outline: CFE Exam Content Outline (May 2026), Section 3, Domain 7, Fraud Risk Management (the ACFE/COSO Fraud Risk Management Framework).
The Fraud Triangle that the ACFE teaches was developed from Donald Cressey's research on embezzlers. Which three components does it name?ACFE, Fraud 101: What Is Fraud? (the Fraud Triangle). Outline: CFE Exam Content Outline (May 2026), Section 3, Domain 1, Understanding Financial Crime (components of the Fraud Triangle).
In the ACFE's 2026 Report to the Nations, how did median losses compare between organizations with a formal reporting mechanism (hotline) and those without one?ACFE, Occupational Fraud 2026: A Report to the Nations, Hotline Effectiveness. Outline: CFE Exam Content Outline (May 2026), Section 3, Domain 5, Fraud Prevention Programs (reporting programs).
In the ACFE's 2026 Report to the Nations, how were frauds most often detected?ACFE, Occupational Fraud 2026: A Report to the Nations, Figures 13 and 14. Outline: CFE Exam Content Outline (May 2026), Section 3, Domain 5, Fraud Prevention Programs (reporting programs).
In the ACFE's 2026 Report to the Nations, what share of revenue do Certified Fraud Examiners estimate a typical organization loses to fraud each year?ACFE, Occupational Fraud 2026: A Report to the Nations, key findings. Outline: CFE Exam Content Outline (May 2026), Section 3, Domain 1, Understanding Financial Crime (effects of financial crime on organizations).
In the ACFE's 2026 Report to the Nations, which category of occupational fraud was the least common and the most costly?ACFE, Occupational Fraud 2026: A Report to the Nations, Figure 2. Outline: CFE Exam Content Outline (May 2026), Section 3, Domain 1, Understanding Financial Crime (research and trends in occupational fraud).
What must the audit committee of a listed company set up under 15 U.S.C. 78j-1(m)(4), added by the Sarbanes-Oxley Act?15 U.S.C. 78j-1(m)(4), Complaints. Outline: CFE Exam Content Outline (May 2026), Section 3, Domain 2, Corporate Governance (best practices for effective audit committees).
Which fraud control had the largest percentage reduction in median loss in the ACFE's 2026 Report to the Nations?ACFE, Occupational Fraud 2026: A Report to the Nations, table of anti-fraud controls and median loss. Outline: CFE Exam Content Outline (May 2026), Section 3, Domain 6, Fraud Risk Assessment (purpose and types of anti-fraud controls).
How this list was compiled: Our own questions, written to the CFE Exam Content Outline that the Association of Certified Fraud Examiners publishes, last updated May 2026 (https://www.acfe.com/-/media/files/acfe/pdfs/cfe-exam/cfe-exam-content-outline_2026.pdf, linked from https://www.acfe.com/cfe-credential/about-the-cfe-exam/exam-blueprint, read 2026-10-12): Section 1, Fraud Schemes and Financial Crimes, 120 questions; Section 2, Fraud Investigations and Legal Issues, 120; Section 3, Fraud Prevention and Deterrence, 70. This bank of 50 holds 19, 19 and 12. Every fact was read on 2026-10-12 in the public text its question names: the United States Code, the Federal Rules of Evidence and the Federal Acquisition Regulation (law.cornell.edu and ecfr.gov), 31 CFR 1010.311 and 1020.320, 17 CFR 240.10b5-1, the UK Bribery Act 2010 (legislation.gov.uk), the Internal Revenue Manual, the U.S. Courts' Bankruptcy Basics, the Justice Department's bid rigging primer, the SEC's Investor.gov glossary, the ACFE's public pages and its 2026 Report to the Nations, and Wikipedia articles. Licence: Questions, choices and explanations are original work of this site.
How it works
This CFE practice exam asks 50 questions of our own in the three sections of the current exam: schemes and financial crimes, investigations and legal issues, and prevention and deterrence. Unofficial: not affiliated with or endorsed by the ACFE.
Read the full guide
Three sections since June 2026
The content outline, updated May 2026, has three sections: Fraud Schemes and Financial Crimes (120 questions), Fraud Investigations and Legal Issues (120) and Fraud Prevention and Deterrence (70). This certified fraud examiner practice test holds 19, 19 and 12.
What each answer rests on
Scheme definitions come from the glossary of the 2026 Report to the Nations; law questions from the United States Code, the Federal Rules of Evidence and the UK Bribery Act.
A timed CFE practice test
Exam mode asks all 50 in 63 minutes, the real pace, with the real pass mark of 75%.
Skimming takes money before it is recorded; cash larceny takes it after.
Each real section is a separate, closed-book appointment, so practice one topic at a sitting.
Questions and answers
How many questions are on the CFE exam?
310 across three separately timed sections: 120 questions in 2.5 hours for each of the first two, and 70 questions in 1.5 hours for Fraud Prevention and Deterrence.
What is the passing score for the CFE exam?
75% or more of the questions in each section, by the candidate handbook. Candidates have five attempts at each section.
Are these CFE exam sample questions from the ACFE?
No. These CFE practice test questions were written for this site from public sources. None comes from the real exam, the Fraud Examiners Manual or the CFE Exam Prep Course.
How much does the CFE exam cost?
The CFE Exam application fee of $480 covers the first attempt at each section. A retake is $110 for each failed section, by the exam FAQ page.