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SOFE CFE Practice Exam Questions
Certified Fraud Examiner
Total Questions : 186
Update Date : February 21, 2026
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SOFE CFE Sample Question Answers
Question # 1A process by which several bidders conspire to split contracts up and ensure that each gets a certain amount of work is called:
A. Bid opening
B. Fictitious Bidding
C. Bid pooling
D. Bid log
Question # 2
Which of the following is NOT standard of generally accepted accounting principles?
A. Conservatism
B. Cost
C. Full disclosure
D. Quality control
Question # 3
A ___________ occurs when an employee, manager or executive has an undisclosed economic or personal interest in a transaction that adversely affects the organization.
A. Conflict of interest
B. Illegal sale
C. Unauthorized purchase
D. Financial disclosure
Question # 4
In ___________ scheme, an employee creates false vouchers or submits false invoices to the employer.
A. Sale requisition
B. Purchase requisition
C. Voucher handling
D. Cash generating
Question # 5
________ decrease assets and expenses and/or increase liabilities and/or equity
A. Journal Entries
B. Debit
C. Credit
D. None of all
Question # 6
A variation between the physical inventory and the perpetual inventory totals is called:
A. Altered inventory
B. Account receivable
C. Shrinkage
D. Write-offs
Question # 7
In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?
A. Bid-rigging
B. Kickbacks
C. Competitive bidding
D. Bid solicitation
Question # 8
The scheme in which the same vendor is receiving favorable treatment van be found in purchases by vendor searches.
A. True
B. False
Question # 9
__________ is required if and when officers, executives or other persons in trusted positions become subjects of a criminal indictment.
A. Conflict of interest
B. Turnaround sale or flip
C. Disclosure
D. Resource diversion
Question # 10
Maintain the presence of a manager or supervisor near the area of the cash register as a deterrent to theft is a prevention for:
A. Fraudulent statement scheme
B. Asset misappropriation scheme
C. Larceny scheme
D. Register disbursement scheme
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