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 the primary purpose of benchmarking during a fraud risk assessment? → To compare an organization's fraud controls against peer organizations or best practices
4. Which PCAOB standard requires external auditors to assess the risk of material misstatement due to fraud? → AS 2401
5. Which interview technique involves asking a suspect to recount events in reverse chronological order to detect deception? → Reverse order questioning
6. Which of the following is a key part of interviewing witnesses? → Taking detailed notes and staying neutral
7. Which of the following BEST illustrates a conflict of interest in a corporate governance context? → A procurement officer who awards a contract to their spouse's company
8. A supervisor approves overtime for employees who did not actually work those hours, splitting the fraudulent pay. This is classified as: → Falsified hours and salary scheme
9. When conducting a covert investigation, what is the BIGGEST risk of interviewing a suspect prematurely? → The suspect may destroy evidence or alert co-conspirators
10. Which red flag is most indicative of a bid-rigging scheme in procurement? → A winning bidder repeatedly submits prices just below competitors' bids
11. The 'fraud triangle' concept was developed primarily by which researcher? → Donald Cressey
12. When using data analytics as part of a fraud risk assessment, what is the primary goal? → To identify anomalies and patterns that may indicate fraud risk exposure
13. A 'ghost employee' scheme is detected when auditors find: → Payroll records for workers with no HR file, time records, or supervisors
14. What is the main advantage of a confidential employee hotline compared to open-door reporting policies? → It encourages reporting by reducing fear of retaliation
15. Which type of audit committee independence concern arises when a committee member receives consulting fees from the company? → Material relationship that compromises independence
16. 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.
17. In a Ponzi scheme money laundering investigation, early investor returns paid from new investor funds are best characterized as: → Proceeds of wire fraud potentially subject to money laundering charges
18. Which of the following is an example of volatile data that must be collected first at a live fraud scene? → Contents of RAM including running processes and open network connections
19. In a kickback scheme involving procurement, which party typically initiates the fraudulent arrangement? → A company employee with purchasing authority
20. What governance structure characteristic is MOST associated with weak oversight and increased fraud risk? → Dominant CEO who also serves as board chairman
21. Which COSO framework component involves identifying and analyzing risks that could prevent an organization from achieving its objectives? → Risk Assessment
22. 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
23. A company capitalizes ordinary repair costs as long-term assets to reduce current expenses. This scheme primarily overstates: → Net income and total assets
24. A fraud examiner is reviewing emails for evidence. Which chain of custody step is MOST critical when collecting digital evidence? → Creating a forensic image of the original media
25. How can metadata embedded in a Microsoft Word document assist a fraud examiner? → It can expose the author's name, revision history, and creation date
26. When investigating a suspected money laundering case, which type of analysis maps the flow of funds through multiple accounts and entities? → Link analysis
27. Which type of financial statement fraud involves management using aggressive estimates to overstate pension plan assets? → Improper asset valuation
28. What is 'motivational interviewing' most useful for in a fraud investigation context? → Encouraging reluctant witnesses or subjects to voluntarily provide information
29. When evaluating whether a board is exercising proper oversight of management, fraud examiners should FIRST assess: → The board's composition, independence, and access to information
30. A company implements mandatory job rotation for employees handling cash. This control primarily addresses which fraud triangle element? → Opportunity