CFE Study Guide 2026

Everything you need to pass the CFE exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.

📋 CFE Exam Format at a Glance

310
Questions
390 min
Time Limit
75%
Passing Score

📚 CFE Topics to Study (69)

✍️ Sample CFE Questions & Answers

1. Each of these agencies is a good fit for the kind of information it gives, except:
State attorney gen: maintains birth records and info about people's SSNs

Maintaining birth records and SSN information is not a State Attorney General function — vital statistics are kept by state health/vital records offices and SSNs by the Social Security Administration. The other three correctly match the DOJ, CIA, and Secret Service to their actual responsibilities.

2. Which internal control is most effective at preventing a billing scheme involving fictitious vendors?
Vendor master file maintenance with independent approval

Maintaining a controlled vendor master file with independent approval of new vendors prevents employees from adding fictitious vendors to submit fraudulent invoices.

3. Which of the following financial statement fraud schemes would most directly cause gross profit margin to be overstated?
Understating cost of goods sold

Gross profit margin equals (Sales minus COGS) divided by Sales, so understating COGS directly inflates this metric.

4. Which of the following rights must be given to a suspect who is being interrogated in a custodial setting by law enforcement, per Miranda v. Arizona?
The right to remain silent and the right to an attorney

Miranda warnings require law enforcement to inform custodial suspects of their right to remain silent and their right to legal counsel before interrogation.

5. Which analytical procedure compares each line item in a financial statement as a percentage of a base figure (e.g., total sales) to identify unusual relationships?
Common-size financial statement analysis

Common-size analysis expresses each line item as a percentage of a base amount, making it easy to spot proportions that deviate from expectations.

6. This is what the Gramm-Leach-Bliley Act lets:
All of the above

The Gramm-Leach-Bliley Act covers all three: it permits financial institutions to share and sell customer information while also requiring that customers be given the right to opt out of having their information shared. Because each option is a valid provision, 'All of the above' is correct.

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1. Learn with Flashcards → 2. Drill Practice Tests → 3. Take the Full Exam Simulation
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