CFS Cheat Sheet 2026

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

1. Which control is most effective at preventing a single employee from executing a billing scheme undetected? → Segregating duties so that no single employee can both add vendors and approve payments
2. Which regulatory body oversees securities markets in the U.S.? → Securities and Exchange Commission (SEC).
3. Healthcare fraud committed by a provider billing Medicare for services never rendered is an example of: → Phantom billing
4. Which indicator is a classic red flag for a billing scheme involving fictitious vendors? → Vendors with physical addresses matching employee addresses
5. Which governance practice helps prevent a single individual from committing and concealing fraud? → Job rotation and mandatory vacations
6. Check kiting exploits which banking vulnerability? → The float period between check deposit and fund clearance
7. According to ACFE research, what is the most common initial detection method for occupational fraud, including asset misappropriation? → A tip from an employee or other informant
8. Which technique is most effective in preventing fraudulent financial reporting? → Implementing strong corporate governance and oversight.
9. The COSO framework's control environment component most directly supports fraud prevention by: → Establishing the ethical foundation and governance structures of the organization
10. What is a key principle of witness interviewing techniques in Certified Fraud Specialist practice? → Applying structured methodologies based on evidence and best practices
11. When implementing expert testimony & court presentation practices, what should CFS professionals prioritize? → Alignment with professional standards, stakeholder needs, and organizational goals
12. What is a key principle of insurance fraud investigation in Certified Fraud Specialist practice? → Applying structured methodologies based on evidence and best practices
13. When implementing money laundering & aml compliance practices, what should CFS professionals prioritize? → Alignment with professional standards, stakeholder needs, and organizational goals
14. An organization's ethics hotline received a tip about an executive's expense fraud. Who should typically investigate this allegation? → Internal audit or a designated fraud investigation team independent of the accused
15. What challenge is most commonly encountered in expert testimony & court presentation within Certified Fraud Specialist practice? → Resistance to change and difficulty maintaining consistency across stakeholders
16. Why is maintaining investigator impartiality critical? → To ensure fair and objective findings.
17. When implementing insurance fraud investigation practices, what should CFS professionals prioritize? → Alignment with professional standards, stakeholder needs, and organizational goals
18. Which tool is most effective for digital forensic investigations? → Digital forensic software tools.
19. How should CFS professionals measure success in expert testimony & court presentation? → Using defined metrics, benchmarks, and regular evaluation against established goals
20. Which SOX provision requires management and auditors to assess and report on the effectiveness of internal controls over financial reporting? → Section 404
21. What is a key principle of digital forensics & cyber fraud in Certified Fraud Specialist practice? → Applying structured methodologies based on evidence and best practices
22. When implementing identity theft & prevention practices, what should CFS professionals prioritize? → Alignment with professional standards, stakeholder needs, and organizational goals
23. What is the best description of the 'fraud triangle'? → A model illustrating pressure, opportunity, and rationalization behind fraud.
24. Which of the following is an example of non-cash asset misappropriation? → Stealing or misusing company inventory and equipment
25. Which regulatory requirement focuses on protecting personal health information? → Health Insurance Portability and Accountability Act (HIPAA).
26. What challenge is most commonly encountered in digital forensics & cyber fraud within Certified Fraud Specialist practice? → Resistance to change and difficulty maintaining consistency across stakeholders
27. Which SOX section protects employees of publicly traded companies who report fraud from retaliation? → Section 806
28. How should CFS professionals measure success in digital forensics & cyber fraud? → Using defined metrics, benchmarks, and regular evaluation against established goals
29. "Tone at the top" in fraud prevention refers to: → Senior leadership's demonstrated commitment to ethics and anti-fraud culture
30. Which of the following best describes the ethical principle of confidentiality in investigations? → Protecting sensitive information and limiting disclosure.