CERTIFIED FRAUD EXAMINERS CFE EXAMS
PACKAGE DEAL RATED A CERTIFICATION
PAPER 2026 FULL ANSWERS GRADED A+
⩥ Which of the following is TRUE regarding organizational structure?
A. Companies with departments that are isolated geographically have a
reduced risk of fraud
B. The existence of many specialized departments within a company
generally increases the overall risk of fraud within the organization
C. Misbehavior is more likely to be detected in a complex
organizational structure than in a simple organizational structure
D. All of the above. Answer: The existence of many specialized
departments within a company generally increases the overall risk of
fraud within the organization
⩥ Detective anti-fraud controls include all of the following EXCEPT:
A. Hotline
B. Proactive data analysis techniques
C. Physical inspections
D. Hiring policies and procedures. Answer: Hiring policies and
procedures
, ⩥ According to AU Section 240, the auditor's assessment of the risk of
material misstatement due to fraud at the financial statement level
should have an effect on which of the following aspect(s) of an audit?
A. Consideration of accounting principles used
B. Assignment and supervision of personnel
C. Choice of auditing procedures
D. All of the above. Answer: All the above
⩥ The risk of the auditor not detecting a material misstatement resulting
from employee fraud is greater than the risk of the auditor not detecting
a material misstatement resulting from management fraud.
A. True
B. False. Answer: False
⩥ The risk of an auditor not detecting a material misstatement resulting
from fraud is higher than the risk of an auditor not detecting a material
misstatement resulting from the error.
A. True
B. False. Answer: True
PACKAGE DEAL RATED A CERTIFICATION
PAPER 2026 FULL ANSWERS GRADED A+
⩥ Which of the following is TRUE regarding organizational structure?
A. Companies with departments that are isolated geographically have a
reduced risk of fraud
B. The existence of many specialized departments within a company
generally increases the overall risk of fraud within the organization
C. Misbehavior is more likely to be detected in a complex
organizational structure than in a simple organizational structure
D. All of the above. Answer: The existence of many specialized
departments within a company generally increases the overall risk of
fraud within the organization
⩥ Detective anti-fraud controls include all of the following EXCEPT:
A. Hotline
B. Proactive data analysis techniques
C. Physical inspections
D. Hiring policies and procedures. Answer: Hiring policies and
procedures
, ⩥ According to AU Section 240, the auditor's assessment of the risk of
material misstatement due to fraud at the financial statement level
should have an effect on which of the following aspect(s) of an audit?
A. Consideration of accounting principles used
B. Assignment and supervision of personnel
C. Choice of auditing procedures
D. All of the above. Answer: All the above
⩥ The risk of the auditor not detecting a material misstatement resulting
from employee fraud is greater than the risk of the auditor not detecting
a material misstatement resulting from management fraud.
A. True
B. False. Answer: False
⩥ The risk of an auditor not detecting a material misstatement resulting
from fraud is higher than the risk of an auditor not detecting a material
misstatement resulting from the error.
A. True
B. False. Answer: True
