ACFE Cheat Sheet 2026

The 30 highest-yield ACFE facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which U.S. law requires financial transparency and accountability in corporations? → Sarbanes-Oxley Act
2. Which of the following is the most common organizational control for preventing conflicts of interest? → Annual conflict of interest disclosure policy and certification
3. Which of the following is a key part of interviewing witnesses? → Taking detailed notes and staying neutral
4. Which red flag is most indicative of a bid-rigging scheme in procurement? → A winning bidder repeatedly submits prices just below competitors' bids
5. Which of the following is considered a 'red flag' or behavioral indicator that might suggest an employee is involved in an asset misappropriation scheme? → Consistently refusing to take vacation or share job duties.
6. In a kickback scheme involving procurement, which party typically initiates the fraudulent arrangement? → A company employee with purchasing authority
7. Which COSO framework component involves identifying and analyzing risks that could prevent an organization from achieving its objectives? → Risk Assessment
8. Which of the following would be a red flag suggesting an employee is receiving bribes from a vendor? → The employee's lifestyle noticeably exceeds their known salary
9. Why do fraudsters use shell companies? → To facilitate fraudulent financial transactions
10. What is the primary purpose of criminal law? → To punish and deter criminal behavior
11. Which of the following is NOT considered a fundamental component of an effective corporate ethics and compliance program? → A guarantee of bonuses for employees who report misconduct.
12. Which element distinguishes an internal audit function from external audit in the context of fraud detection? → Internal auditors work year-round with continuous access to company data and operations
13. What is 'complementary bidding' in a bid rigging conspiracy? → Submitting intentionally losing bids to make a predetermined winner appear competitive
14. Which of the following is a verbal cue that may indicate deception during an interview? → Using oaths or swearing to bolster the credibility of their statements.
15. Which behavioral red flag is commonly associated with employees committing procurement fraud? → Living beyond apparent means or refusing to take vacation
16. Which internal control procedure is most effective at detecting duplicate payments to vendors? → Running automated data analytics to match invoice numbers, amounts, and vendor IDs
17. Which internal control is most effective against fraud? → Segregation of duties
18. Which type of procurement fraud occurs when an employee creates a fictitious vendor and submits invoices for goods or services never provided? → Shell company fraud
19. An internal auditor discovers that the same employee approves purchase orders and signs vendor checks. This is an example of: → A segregation of duties weakness
20. Which data analysis method is best suited to identifying employees who are also listed as vendors in the accounts payable system? → Cross-matching employee and vendor master files
21. The 'fraud triangle,' as described in the ACFE's guidance, consists of which three elements? → Pressure, opportunity, and rationalization
22. Which of the following scenarios describes a non-cash asset misappropriation scheme? → A warehouse employee steals a pallet of inventory and sells it to a third party.
23. In a 'pay-and-return' bribery scheme, which party typically initiates the corrupt payment? → The vendor initiates by offering payment to the employee
24. In procurement fraud, what does 'specification manipulation' involve? → Writing bid specifications tailored to a favored vendor's capabilities
25. When investigating a suspected procurement fraud, which document should a fraud examiner prioritize obtaining first? → Contracts, purchase orders, and invoices related to suspect vendors
26. Which financial transaction is considered suspicious? → A $9,999 cash deposit
27. A fraudster seeking to conceal liabilities and expenses to make a company appear more profitable would be MOST likely to: → Fail to record vendor invoices received near the end of the accounting period.
28. Why is documentation critical in investigations? → It ensures consistency and builds credibility
29. Which type of internal control is designed to detect fraud after it has occurred? → Detective control
30. Which control activity directly reduces the risk of unauthorized access to financial systems? → Role-based access controls (RBAC) limiting system permissions to job-required functions